Fidelity Investments: Mutual Fund Performance Review

Fidelity Investments is a world leader in mutual funds, with over 70 years of experience in the business. The company offers a wide range of funds catering to different investment needs and tastes. Fidelity's mutual funds cover all asset classes, from domestic equity to specialized sectors, allowing investors to find the right mix of funds to achieve their strategic investment goals. The company's extensive resources, global research capabilities, and dedication to innovation have made it a trusted name in the investment world. With assets under administration of $11.5 trillion as of September 30, 2023, Fidelity is committed to making financial expertise accessible and effective for its clients.

Fidelity's asset allocation philosophy

Fidelity's asset allocation approach is characterised by its dynamic nature, with a focus on reducing risk as investors approach their horizon date. This is achieved through regular rebalancing by managers, ensuring portfolios stay on track regardless of market fluctuations. The company's commitment to research and strategic principles is key, with a broad lineup of asset allocation solutions tailored to meet diverse investment needs.

The company's asset allocation funds cover a range of investment styles, including target date, target risk, retirement income, and income/real return options. These funds are managed by dedicated research teams, who provide macroeconomic, quantitative, and fundamental insights. With over 25 years of experience, Fidelity's asset allocation research team is one of the largest in the industry.

Fidelity's top international equity funds

International equity funds are a great way to diversify your portfolio and tap into the growth potential of companies outside the US. With over 50 years of international asset management experience, Fidelity offers a broad set of investment choices to tailor your international exposure. Here are some of Fidelity's top international equity funds:

Fidelity® Diversified International Fund (FDIVX)

FDIVX is Fidelity's flagship international fund that seeks long-term capital growth by investing primarily in the markets of the MSCI EAFE Index. This fund provides exposure to successful, innovative, and profitable companies outside the US, which may offer significant appreciation potential.

Fidelity® Emerging Markets Fund (FEMKX)

FEMKX is designed as a core holding for growth-oriented investors seeking emerging markets exposure. It primarily invests in companies benefiting from structural growth trends in regions with less developed economies.

Fidelity® International Capital Appreciation Fund (FIVFX)

FIVFX is an opportunistic, go-anywhere fund dedicated to investing in high-quality companies outside the US. This fund can also benefit from long-term megatrends, making it a great choice for investors looking for a more dynamic approach.

Fidelity International Index Fund (FSPSX)

FSPSX is another great option for investors seeking international exposure. It tracks the performance of the MSCI Europe, Australasia, and Far East Index (EAFE). By avoiding emerging market equities, FSPSX offers a more stable return with lower volatility. European stocks have the largest allocation at 65.94%, while Japanese equities account for 22.93% of the fund's assets.

Fidelity International Small Cap Fund (FISMX)

FISMX is a great choice for investors looking for exposure to smaller companies outside the US. This fund provides access to the growth potential of small-cap stocks in international markets, offering a more diversified approach to international investing.

Fidelity's international equity funds offer a range of benefits, including a broad set of investment choices, a dedicated global team of research analysts, and the potential for lower volatility and higher returns. Remember, investing in international markets comes with its own set of risks, including currency fluctuations and political issues, so be sure to do your due diligence before investing.

Fidelity's top fixed income funds

Fidelity is one of the most experienced fixed-income managers in the industry, with over 190 professionals managing more than $1 trillion in assets. 24 of their fixed-income funds have been awarded 4 or 5 stars by Morningstar, and 8 have earned a GOLD Morningstar Analyst rating. Here is a list of some of Fidelity's top fixed-income funds:

Fidelity Total Bond Fund (FTBFX)

This fund seeks a high level of current income and can be used as a core bond investment by investors with a long-term perspective. The fund has offered broad exposure to government and investment-grade corporate bonds, opportunistic high-yield investments, and a track record of competitive total returns.

Fidelity Total Bond ETF (FBND)

The Fidelity Total Bond ETF is an intermediate-term exchange-traded fund (ETF) that uses a diversified fixed-income strategy. It seeks to deliver risk-adjusted outperformance during all interest rate environments. The ETF provides the flexibility of an ETF, offering intraday pricing and trading, daily transparency of holdings, and diversification opportunities.

Fidelity Capital & Income Fund (FAGIX)

This fund has an "unconstrained" approach, allowing it to invest in higher-risk fixed-income securities, including defaulted bonds, junk bonds, and even some equities. Historically, this approach has helped FAGIX outperform its benchmark, and it currently pays a 5.6% 30-day SEC yield with a 0.97% expense ratio.

Fidelity Focused High Income Fund (FHIFX)

FHIFX targets non-investment-grade bonds, generally focusing on bonds rated "BB" and "B." The fund also invests in preferred shares, defaulted bonds, and convertible bonds. It pays a 5.7% 30-day SEC yield and has a 0.75% expense ratio, with no minimum investment requirements or transaction fees on Fidelity's brokerage platform.

Fidelity Short Duration High Income Fund (FSAHX)

With a focus on short-duration fixed-income funds, this fund primarily targets bonds rated "BB" and "B" with three years or less remaining in maturity. This strategy achieves a duration of just two years, making it resilient to interest rate fluctuations. The fund has a competitive 6.8% 30-day SEC yield and a 0.71% expense ratio, with no minimum required investment.

Fidelity Investment Grade Bond Fund (FBNDX)

FBNDX offers a more balanced approach by investing in funds that hold bonds rated "BBB," the minimum credit rating for investment-grade. This fund has been a top performer in its peer category, beating out the majority of 418 funds in terms of risk-adjusted returns, earning a five-star Morningstar rating. It has a 0.45% expense ratio and currently pays a 4.4% 30-day SEC yield.

Fidelity's top sector funds

Fidelity is a world leader in mutual funds, with a global network of nearly 400 research professionals and one of the largest research departments in the industry. The company offers a wide range of funds, covering all asset classes, from domestic equity to specialised sectors.

Fidelity Select Semiconductors Portfolio (FSELX)

This fund has been trading for almost 40 years and has nearly $20 billion in assets under management. It focuses on companies in the design, manufacture, servicing, or sale of electronic components like semiconductors, circuit boards, and similar goods. Top holdings include Nvidia, NXP Semiconductors, and ON Semiconductor.

Fidelity Select Consumer Discretionary Portfolio (FSCPX)

This fund provides exposure to companies that manufacture goods or provide services that people want but don't necessarily need, such as high-definition televisions, cars, and vacations.

Fidelity Select Retailing Portfolio (FSRPX)

This fund invests in companies that are primarily involved in the retailing industry, including both traditional brick-and-mortar stores and e-commerce platforms.

Fidelity Select Health Care Portfolio (FSPHX)

This fund focuses on companies in the healthcare sector, including those engaged in the production and delivery of medicine and healthcare-related goods and services.

Fidelity Select Technology Portfolio (FSPTX)

This fund invests in companies within the information technology sector, which are engaged in the creation, storage, and exchange of digital information.

Fidelity Select Software and IT Services Portfolio (FSCSX)

This fund focuses on companies that provide software and information technology services, including those involved in software development, IT consulting, and data processing.

Fidelity's sector funds offer tactical investment approaches, such as sector rotation strategies, more precise asset allocation, and greater diversification for investors' portfolios.

Fidelity's top index funds

Fidelity is a world leader in mutual funds, with a rich history, global research capabilities, and a dedication to innovation. The company offers a wide range of index funds that provide investors with exposure to various segments of the market, including domestic and international equities, fixed income, and specialized sectors. Here are some of Fidelity's top index funds:

Fidelity 500 Index Fund (FXAIX)

Fidelity's 500 Index Fund is one of the most popular S&P 500 index funds in the US. It has a very low expense ratio of 0.015% and no minimum required investment, making it accessible to investors of all account sizes. The fund has a long history, having been around since 1988, and offers broad diversification across large-cap US stocks.

Fidelity Flex 500 Index (FDFIX)

The Fidelity Flex 500 Index Fund is unique in that it is completely free to invest in for active Fidelity Investments account holders. While it may be smaller than some other S&P 500 index funds, it still has a significant amount of assets under management, ensuring investors can invest with confidence.

Fidelity ZERO Total Market Index Fund (FZROX)

The Fidelity ZERO Total Market Index Fund is part of Fidelity's suite of ZERO funds, which offer investors access to various segments of the market with zero expense ratios. The FZROX fund provides exposure to the total US stock market, including large, mid, and small-cap stocks, and is an excellent option for investors seeking broad diversification.

Fidelity International Index Fund (FSPSX)

The Fidelity International Index Fund provides investors with exposure to international developed markets. It is a great option for those looking to diversify their portfolios globally and access companies outside of the US. The fund has a relatively low expense ratio, making it a cost-effective option for international exposure.

Fidelity Extended Market Index Fund (FSMAX)

The Fidelity Extended Market Index Fund offers investors access to small and mid-cap US stocks, providing a complement to large-cap focused funds like the S&P 500 index funds. This fund can help investors seeking exposure to smaller companies and the potential for higher growth.

Fidelity's index funds provide investors with a range of options to gain exposure to various segments of the market. With low expense ratios and a long history of investment management, Fidelity's top index funds offer attractive choices for investors looking to diversify their portfolios.

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