Laila Keith
Fidelity offers several funds that invest in the energy sector, including the Fidelity Select Energy Portfolio (FSENX), the Fidelity Natural Resources Fund, the Fidelity Advisor Energy Fund, and the Fidelity MSCI Energy Index ETF. These funds provide investors with exposure to companies operating in various energy-related industries, such as oil, gas, electricity, coal, and alternative energy sources. The funds aim for capital appreciation by investing a significant portion of their assets in securities of companies primarily engaged in the energy sector. The specific investment strategies, holdings, and performance of each fund vary, providing investors with a range of options to consider when investing in the energy sector through Fidelity.
| Characteristics | Values |
|---|---|
| Name | Fidelity Select Energy Portfolio (FSENX) |
| Score | 7.7/10 |
| Class | No Load |
| Total Assets | $2.41 billion as of November 27, 2023 |
| Holdings | 47 as of November 27, 2023 |
| Top Holdings | Exxon Mobil, Chevron, EOG Resources, Baker Hughes, and Pioneer Natural Resources |
| Initial Investment | $2,500 |
| Expense Ratio | 0.78% |
| Return | 0.65% over the past year, 52.72% over the past three years, 9.90% over the past five years, and 2.79% over the past decade |
| Fund Manager | John Dowd |
What You'll Learn
Fidelity Select Energy Portfolio
The fund seeks capital appreciation and normally invests at least 80% of its assets in securities of companies principally engaged in the energy field. This includes companies involved in the exploration, production, and management of energy resources, as well as those that provide services to these industries.
The fund has a total net asset value of $2.105 billion, with a net expense ratio of 0.73% and a 52-week average return of 4.58%.
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Fidelity MSCI Energy Index ETF
The Fidelity MSCI Energy Index ETF (FENY) is an exchange-traded fund that offers investors exposure to the energy sector. The fund invests in a portfolio of companies within the energy sector, including those involved in the exploration, production, and management of energy resources such as oil and gas, as well as companies servicing these industries.
The energy sector is known for its volatility due to its narrow focus, and investments in this sector tend to be more unpredictable than those diversified across multiple sectors. However, for investors seeking targeted exposure to the energy industry, the Fidelity MSCI Energy Index ETF provides an opportunity to gain access to a range of energy-focused companies.
This fund is just one of several energy-focused investment options offered by Fidelity. Others include the Fidelity Select Energy Portfolio, the Fidelity Natural Resources Fund, and the Fidelity Advisor Energy Fund. Each of these funds has different investment objectives and strategies, allowing investors to choose the one that best aligns with their goals and risk tolerance.
Before investing in any mutual fund or exchange-traded fund, it is essential to consider its investment objective, risks, charges, and expenses. Investors should conduct their own research, assess their financial situation, and, if necessary, consult with a financial adviser to determine if a particular fund is suitable for their portfolio.
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Vanguard Energy Fund
The Vanguard Energy Fund is an equity energy mutual fund that invests primarily in the common stocks of companies operating within energy-related industries. This includes businesses in sectors such as alternative energy, coal, exploration, oil and gas services, pipelines, natural gas services, and refineries.
The fund's objective is to provide long-term capital appreciation, and it typically invests at least 80% of its assets in these energy-related companies. Vanguard Energy Inv (VGENX) is the stock symbol for the Vanguard Energy Fund.
This fund is suitable for investors seeking capital appreciation and wanting exposure to the energy sector. It provides a way to gain access to a diversified portfolio of energy-focused companies, offering the potential for higher returns and long-term growth.
Investing in the energy sector carries certain risks and volatility, as the industry is subject to various factors, including commodity price fluctuations, regulatory changes, and technological advancements. However, the Vanguard Energy Fund can be a good option for those looking to add energy sector exposure to their investment portfolio.
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BlackRock Natural Resources Trust Fund
The BlackRock Natural Resources Trust Fund is an investment fund that seeks long-term growth of capital and to protect the purchasing power of shareholders' capital. The fund primarily invests in equity securities of companies with substantial natural resource assets, such as energy, chemicals, oil, gas, paper, mining, steel, and agricultural products.
The fund has a strong performance history, returning 21.72% over the past three years and 8.52% over the past five years. It has an expense ratio of 1.12%, which is slightly lower than the category average of 1.29%.
The fund's investment approach focuses on high-quality companies with high growth potential. It is managed by BlackRock, a leading global investment manager and fiduciary.
BlackRock offers a range of funds related to the BlackRock Natural Resources Trust Fund, including the BACIX Energy Opportunities Fund and the iShares North American Natural Resources ETF.
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Fidelity Advisor Energy Fund
The Fidelity Advisor Energy Fund (FANAX) is a mutual fund that invests primarily in common stocks of companies in the energy sector. The fund's objective is to seek capital appreciation, and it typically invests at least 80% of its assets in securities of companies that are primarily engaged in the energy industry. This includes companies involved in the exploration, production, and management of energy resources such as oil and gas, as well as companies that service these industries.
The fund is designed to help investors gain exposure to the energy sector and is suitable for those seeking capital appreciation by investing in energy-related companies. The fund's top holdings, as of the latest data, are made up of a diverse range of energy-related companies, with a focus on those with the largest market capitalizations.
The Fidelity Advisor Energy Fund is just one of several energy-focused funds offered by Fidelity, including the Fidelity Select Energy Portfolio and the Fidelity MSCI Energy Index ETF. These funds provide investors with a range of options to invest in the energy sector through mutual funds or ETFs, depending on their specific needs and investment goals.
It is important to note that sector investments, including those in the energy sector, tend to be more volatile due to their narrow focus. Therefore, investment decisions should be based on an individual's goals, time horizon, and tolerance for risk.
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Frequently asked questions
The Fidelity Select Energy Portfolio (FSENX) is a good option for investing in the energy sector. It has been available since 1981 and has a good track record, with a 10-year annualized return of -2.08% as of June 30, 2021. It also has a low expense ratio of 0.85% and no minimum investment.
The fund invests a minimum of 80% of its assets in companies engaged in traditional energy activities, such as oil, gas, and coal, as well as newer energy sources like nuclear, shale, geothermal, and solar power.
The fund has an expense ratio of 0.78%, which is considered low by Morningstar. The fund's risk is considered average when compared to other funds in its category, and its level of return is rated as above average for the trailing three years, high for the trailing five years, and average for the trailing 10 years.
