Fidelity Select Health Care Portfolio
- Ticker: FSPHX
- Assets: $3.9 billion
- Category: Large-Cap Growth
- YTD Performance: 43.8% vs. 23.1% for the S&P 500
- Expense Ratio: 0.79%
Investors looking to play stocks but with an eye toward sector-weighting should consider the Fidelity Select Health Care (FSPHX). After all, healthcare is a recession-proof sector that is seeing big growth thanks to both the aging Baby Boomers fueling a demographic push and because of the Affordable Care Act giving more uninsured Americans access to healthcare – and thus, treatments.
The stock obviously weights its portfolio to healthcare stocks, but also isn’t afraid to make big bets on individual players. Right now 41% of total assets are in the top 10 holdings alone – which has resulted in mammoth outperformance that has doubled the S&P 500 year-to-date, but can quickly turn the other way if those major holdings head south.
But that’s the bet you’re making with Fidelity Select Healthcare, and thus far it has been a very profitable one for investors.
Given the demographic changes afoot in America, it seems unlikely that FSPHX will crash anytime soon – and given the tremendous performance in 2013, the upside potential of this Fidelity fund should be clear.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.