Consumer Stocks for Retirement Investors #3: Fidelity Select Leisure Portfolio (FDLSX)
With consumer confidence still at record highs and investment accounts brimming with gains, retirement investors may want to focus their attention on the side of frivolous consumer stocks. Although, McDonald’s Corporation (NYSE:MCD) may not be considered frivolous at this point, which is why the Fidelity Select Leisure Portfolio (MUTF:FDLSX) mutual fund is a great active choice.
FDLSX focuses its attention on consumer discretionary stocks, specifically those that engaged in the design, production or distribution of goods or services in the leisure industries. But, for fund manager Katherine E Shaw, “leisure” has a broad definition.
Many of the fund’s 62 holdings — such as MCD or Starbucks Corporation (NASDAQ:SBUX) — are essentially consumer staples at this point. And, some such as Marriott International Inc (NASDAQ:MAR) are more tied to business travel than pure vacations.
Like previously mentioned IYK, this provides FDLSX a mix of consumer stocks and a bigger balance of “wants” vs. “needs” than just on the surface.
It also provides a pretty decent return. The fund carries a coveted five-star rating from Morningstar and has managed to rack-up a 15.16% annual return in the roughly five years since Shaw has been at the helm. With expenses of 0.80%, FDLSX isn’t rock-bottom cheap, but its returns and focus on great staples/discretionary bending consumer stocks is worth the higher fee.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.