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Fidelity Offers a Diverse Recovery Play

Moderately priced IRA fund keeps things moving


The Fidelity Select Transportation Portfolio Fund (MUTF: FSRFX) is an IRA fund that invests primarily in companies engaged in providing transportation services or companies engaged in the manufacture or sale of transportation equipment.

Here are the specifics for the Fidelity Select Transportation Portfolio Fund for today’s mutual fund spotlight:

Investing Strategy: The fund invests primarily in the common stocks of domestic and foreign issuers. About 97% of the fund’s assets are in stocks. The remaining 3% is in cash reserves.

Expense Ratio: With a 0.90% expense ratio and no transaction fee, the fund is moderately priced when compared with other funds in the category. It has a Morningstar Rating of three stars.

Top 5 Holdings: The top stocks in the Fidelity Select Transportation Portfolio Fund include package delivery company United Parcel Service, Inc. (NYSE: UPS) at 16.59%, regional railroad companies Union Pacific Corp (NYSE: UNP) at 16.20% and CSX Corp (NYSE: CSX) at 8.36%, global logistics services provider Expeditors International of Washington, Inc. (NASDAQ: EXPD) at 5.27%, and airline carrier United Continental Holdings Inc (NYSE: UAL) at 4.31%.

Returns: The Fidelity Select Transportation Portfolio Fund 12-month return of 25% is comparable to the broader market’s 24% 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: Sean Gavin
  • Manager’s Tenure: Since September 2010

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