Looking for a Global - Equity fund? You may want to consider Fidelity Value Fund (FDVLX) as a possible option. FDVLX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
We note that FDVLX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDVLX. Since Fidelity Value Fund made its debut in December of 1978, FDVLX has garnered more than $5.79 billion in assets. The fund's current manager is a team of investment professionals.
Of course, investors look for strong performance in funds. FDVLX has a 5-year annualized total return of 3.69% and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 4.96%, which places it in the middle 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 FDVLX over the past three years is 15.71% compared to the category average of 11.62%. Looking at the past 5 years, the fund's standard deviation is 14.72% compared to the category average of 11.62%. This makes the fund more volatile than its peers over the past half-decade.
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. FDVLX lost 61.55% in the most recent bear market and underperformed its peer group by 10%. This might suggest that the fund is a worse choice than its peers during a bear market.
Even still, the fund has a 5-year beta of 1.15, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FDVLX's 5-year performance has produced a negative alpha of -6.88, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 96.42% stock in stocks, which have an average market capitalization of $19.70 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
This fund's turnover is about 74%, so the fund managers are making more trades in a given year than the category average.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FDVLX is a no load fund. It has an expense ratio of 0.55% compared to the category average of 1.15%. FDVLX is actually cheaper than its peers when you consider factors like cost.
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 Value Fund ( FDVLX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Value Fund ( FDVLX ) looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Global - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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