Having trouble finding a Sector – Tech fund? Fidelity Select Semiconductors (FSELX) is a potential starting point. FSELX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

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We note that FSELX is a Sector – Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector – Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.

Fidelity is based in Boston, MA, and is the manager of FSELX. Fidelity Select Semiconductors made its debut in July of 1985, and since then, FSELX has accumulated about $20.33 billion in assets, per the most up-to-date date available. The fund’s current manager, Adam Benjamin, has been in charge of the fund since March of 2020.

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 32.58%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 19.24%, which places it in the top third during this time-frame.

It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.

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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. FSELX’s standard deviation over the past three years is 37.33% compared to the category average of 25.24%. Over the past 5 years, the standard deviation of the fund is 32.63% compared to the category average of 25.08%. This makes the fund more volatile than its peers over the past half-decade.

Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. FSELX has a 5-year beta of 1.41, which means it is likely to be more volatile than the market average. 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. FSELX has generated a positive alpha over the past five years of 12.43, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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