Having trouble finding a Sector – Other fund? Fidelity Select Defense & Aerospace (FSDAX) is a potential starting point. FSDAX bears 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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Fidelity is based in Boston, MA, and is the manager of FSDAX. Fidelity Select Defense & Aerospace made its debut in May of 1984, and since then, FSDAX has accumulated about $1.82 billion in assets, per the most up-to-date date available. The fund’s current manager, Clayton Pfannenstiel, has been in charge of the fund since December of 2021.

Obviously, what investors are looking for in these funds is strong performance relative to their peers. FSDAX has a 5-year annualized total return of 7.29% and is in the bottom 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 16.69%, 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. Compared to the category average of 21.91%, the standard deviation of FSDAX over the past three years is 20.07%. Looking at the past 5 years, the fund’s standard deviation is 24.2% compared to the category average of 23.66%. This makes the fund more volatile than its peers over the past half-decade.

With a 5-year beta of 0.98, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -5.86, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FSDAX is a no load fund. It has an expense ratio of 0.66% compared to the category average of 0.86%. FSDAX is actually cheaper than its peers when you consider factors like cost.

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