The Fidelity Select Wireless Fund (MUTF: FWRL) is what the name implies, a wireless industry-focused fund. Whether consumers prefer a PC, tablet or phone, odds are they all want the freedom that comes with wireless connections. This fund invests in companies primarily engaged in activities relating to wireless communications services or products, giving its investors diversified play in a sector where the market leaders can change before you figure out how to use your new mobile phone.
Here are the specifics for the Fidelity Select Wireless Fund for today’s mutual fund spotlight:
Investing Strategy: The fund invests in common stocks of major U.S. and foreign-based companies and prefers to invest in undervalued small cap companies that are self-financed and stable. Nearly 100% of its assets are in stocks.
Expense Ratio: The fund has an expense ratio of .92% and no transaction fee and is one of the lower priced funds in the sector. It has a Morningstar Rating of three stars.
Top 5 Holdings: The top stocks in the Fidelity Select Wireless Fund include global mobile communications provider Vodafone Group PLC ADR (NYSE: VOD) at 13.59%, wireless telecommunications designer and marketer Qualcomm, Inc. (NASDAQ: QCOM) at 9.52%, communications provider Sprint Nextel Corporation (NYSE: S) at 5.56%, wireless and broadcast site provider American Tower Corporation A (NYSE: AMT) at 4.76%, and communications service provider Verizon Communications Inc (NYSE: VZ) at 4.57%
Returns: The Fidelity Select Wireless Fund 12-month return of 20.48% outperformed the broader market’s 17%. Its 5-year return of 29.3% also outperformed the Dow Jones Industrial Average’s 8.59% return and the S&P 500’s 1.92% return during the period.
Other Fund Statistics
- Total Assets: $332.44 million (as of 6/01/11)
- Minimum Investment: $2,500 ($500 IRA)
- Fund manager: Gavin Baker and Kyle Weaver
- Manager’s Tenure: Since March 2007 and July 2009, respectively