Sector – Energy fund seekers should consider taking a look at Fidelity Advisor Energy Fund M (FAGNX). FAGNX possesses a Zacks Mutual Fund Rank of 2 (Buy), 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
FAGNX finds itself in the Fidelity family, based out of Boston, MA. Since Fidelity Advisor Energy Fund M made its debut in December of 1987, FAGNX has garnered more than $61.62 million in assets. The fund’s current manager, Maurice FitzMaurice, has been in charge of the fund since January of 2020.
Of course, investors look for strong performance in funds. FAGNX has a 5-year annualized total return of -5.26% 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 -12.22%, 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. Over the past three years, FAGNX’s standard deviation comes in at 42.16%, compared to the category average of 22.35%. The standard deviation of the fund over the past 5 years is 34.76% compared to the category average of 18.42%. 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 1.81, so it is likely going to be 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. Over the past 5 years, the fund has a negative alpha of -26.63. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, FAGNX is a load fund. It has an expense ratio of 1.41% compared to the category average of 1.53%. From a cost perspective, FAGNX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Overall, Fidelity Advisor Energy Fund M ( FAGNX ) has a high 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 good potential choice for investors right now.
For additional information on the Sector – Energy area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into FAGNX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.
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