The Fidelity Global Commodity Stock Fund (MUTF:FFGCX) is focused on exactly what the name implies – international stocks that have influence on the commodity market. This could be via energy commodities like crude oil, agricultural commodities, or metals like copper and steel.
Many investors are worried about inflation, and investing in commodities is one of the most common ways to hedge against rising prices. As the cost of raw materials like oil, corn and copper rise, the profits of related commodity stocks also rise in kind.
Here are the specifics for the Fidelity Global Commodity Stock Fund for today’s mutual fund spotlight:
Investing Strategy: At least 80% of the fund’s cash will always be in commodity-related stocks, with the current asset allocation at about 98% in equities.
Expense Ratio: At a 1.1% expense ratio, Fidelity Global Commodity isn’t cheap. But when it comes to commodity-focused funds, only a handful do better and many charge north of 1.5%. The expense ratio is fairly low for the “flavor” of this mutual fund.
Top 5 Holdings: The top stocks in the Fidelity Global Commodity Stock Fund include metals giant BHP Billiton (NYSE: BHP) at 5.1% of the portfolio, oil mega-cap Exxon Mobil (NYSE: XOM) at 4.7%, fertilizer powerhouse Potash Corp. (NYSE: POT) at 4.0%, copper king Rio Tinto (NYSE: RTP) at 3.1% and crude oil stock Royal Dutch Shell (NYSE:RDS.A) at 2.5%.
Returns: The one-year return of the fund is impressive – about 28%, compared with 22% returns for the broader stock market in the last 12 months. Its five-year return is also beating the market, at about 65% compared to about 58% for the Dow Jones Industrial Average.
Other Fund Statistics
- Net Asset Value: $741 million
- Total Number of Holdings: 304
- Minimum Investment: $2,500
- Fund manager: Joe Wickwire
- Manager’s Tenure: Since March 2009