Fidelity Fund Offers Commodity Play for IRAs

by Cynthia Wilson | July 12, 2011 1:42 am

The Fidelity Select Natural Resources Portfolio (MUTF: FNARX[1]) is an IRA mutual fund that invests in companies primarily engaged in owning or developing natural resources or precious metal, or supplying goods and services to such companies.

Natural resources include precious metals, ferrous and nonferrous metals, strategic metals, hydrocarbons, chemicals, paper and forest products, real estate, food, textile and tobacco products, and other basic commodities.

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

Investing Strategy: The fund invests primarily in common stocks and in certain precious metals of domestic and foreign companies. Almost every cent of the fund’s holdings are invested in stocks.

Expense Ratio: The fund has an expense ratio of 0.88% and no transaction fee and is one of the lower priced funds in the sector. It has a Morningstar Rating of three stars.

Top 5 Holdings: The top stocks in the Fidelity Select Natural Resources Portfolio Fund include oil and gas conglomerates Chevron Corporation (NYSE: CVX[2])  at 8.16%. Occidental Petroleum Corporation (NYSE: OXY[3]) at 5.92%, Marathon Oil Corp (NYSE: MRO[4]) at 5.77% , oil field services company Halliburton Company (NYSE: HAL[5]) 4.27%, and global integrated energy company Hess Corporation (NYSE: HES[6]) at  4.03%.

Returns: The Fidelity Select Natural Resources Portfolio Fund 12-month return of 46.04% is almost double the broader market’s 24% over the same period. Its 5-year return of 38.70 % more than doubled the Dow Jones Industrial Average’s 14.11% return and it dwarfed the S&P 500’s 6.19 % return during the period.

Other Fund Statistics

  1. FNARX:
  2. CVX:
  3. OXY:
  4. MRO:
  5. HAL:
  6. HES:

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