Do you eat out often or believe that vacation means a quick getaway to your favorite casino or resort? Then the Fidelity Select Leisure Fund (MUTF:FDLSX) may provide an opportunity to get back the money you spend on a burger, coffee, travel and playtime. The IRA fund invests primarily in companies engaged in the design, production or distribution of goods or services in the leisure industries. The fund is a good play on all things entertainment and leisure but is not for the risk-averse given its strong dependence on consumer discretionary spending.
Here are the specifics for the Fidelity Select Leisure Fund for today’s mutual fund spotlight:
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 0.9 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 Leisure Fund includes gourmet coffeehouse chain Starbucks (NASDAQ:SBUX) at 15.61%, fast food king McDonald’s (NYSE:MCD) 13.88%, casino resort operator Las Vegas Sands (NYSE:LVS) at 5.63%, hotel and leisure company Starwood Hotels & Resorts (NYSE:HOT) at 5.44% and hospitality company Wyndham Worldwide (NYSE:WYN) at 4.38%.
Returns: The Fidelity Select Leisure Fund’s had a 12-month return of about 35%, beating the broader market’s estimated 23% return over the same period. Its five-year return of about 30% also outperformed the Dow Jones Industrial Average’s approximate 16% return, and the S&P 500’s approximate 6% return over the period.
Other Fund Statistics
- Total Assets: $384.54 million (as of 7/15/11)
- Minimum Investment: $2,500
- Fund Manager: Jean Park
- Manager’s Tenure: Since July 2010