Any investors hoping to find a Sector - Energy fund could think about starting with Fidelity Advisor Energy Fund M (FAGNX). FAGNX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
We classify FAGNX in the Sector - Energy category, an area that is rife with possible choices. Throughout the massive global energy sector, Sector - Energy mutual funds hold a wide range of quickly changing and vitally important industries. While oil and gas comprise the bulk of the exposure, carbon-based fuels will be the biggest group of assets in these funds, though clean energy is starting to pick up steam.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FAGNX. Since Fidelity Advisor Energy Fund M made its debut in December of 1987, FAGNX has garnered more than $59.92 million in assets. Maurice FitzMaurice is the fund's current manager and has held that role since January of 2020.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of -0.88%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -9.03%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FAGNX over the past three years is 42.15% compared to the category average of 21.83%. Over the past 5 years, the standard deviation of the fund is 35.14% compared to the category average of 18.36%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.84, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FAGNX's 5-year performance has produced a negative alpha of -21.9, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FAGNX is a load fund. It has an expense ratio of 1.38% compared to the category average of 1.54%. So, FAGNX is actually cheaper than its peers from a cost perspective.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Fidelity Advisor Energy Fund M ( FAGNX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Advisor Energy Fund M ( FAGNX ) looks like a somewhat average choice for investors right now.
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