The Fidelity Select Defense and Aerospace Portfolio Fund (MUTF: FSDAX) is an IRA fund focused on companies engaged in the sale of products or services related to the defense and aerospace industries. In these troubled times, when geopolitical turmoil is a constant of every nightly news report, such a fund may be suitable for long-term investors looking to diversify their blue chip holdings.
Here are the specifics for the Fidelity Select Defense and Aerospace mutual fund:
Investing Strategy: The fund invests primarily in the common stocks of domestic and foreign issuers. Nearly 100% of the fund’s assets are in stocks.
Expense Ratio: With a 0.88 expense ratio and no transaction fee, the fund is moderately priced and has a Morningstar Rating of four stars.
Top 5 Holdings: The top stocks in the Fidelity Select Defense and Aerospace Portfolio Fund include technology products and services provider United Technologies Corp (NYSE: UTX) at 21.27%, aerospace and defense products Boeing Company (NYSE: BA) at 14.25%, complex metal component manufacturer Precision Castparts Corp. (NYSE: PCP) at 9.09%, aerospace components, systems and services provider Goodrich Corporation (NYSE: GR) at 5.90%, and diversified technology and manufacturer Honeywell International, Inc. (NYSE: HON) 4.94%.
Returns: The Fidelity Select Defense and Aerospace Portfolio Fund 12-month return of 25% is comparable to the broader market’s 24% return over the same period. Its 5-year return of 12% underperformed the Dow Jones Industrial Average’s 14% return, but beat the S&P 500’s 6% return over the period.
Other Fund Statistics
- Total Assets: $300.94 million (as of 7/10/11)
- Minimum Investment: $2,500
- Fund manager: John Sheehy
- Manager’s Tenure: Since April 2009