Is Fidelity International Real Estate (FIREX) a great choice for mutual funds right now?
Looking for a Sector – Real Estate fund? Starting with Fidelity International Real Estate (FIREX) is a possibility. FIREX has a Zacks mutual fund ranking of 1 (strong buy), which is based on nine forecasting factors such as size, cost, and past performance.
We classify FIREX in the Sector – Real Estate category, an area full of possible choices. Industry – Real estate mutual funds typically invest in various real estate investment trusts (REITs). A REIT is a popular income vehicle thanks to tax rules that require REITs to pay out at least 90% of their income each year in order to avoid double taxation. This technique makes the securities here pay high dividends, and almost bond as in some cases; however, they still carry the risk of stocks.
Fund History / Manager
FIREX is part of the Fidelity family of funds, a company based in Boston, MA. Fidelity International Real Estate debuted in December 2004. Since then, FIREX has accumulated assets of approximately $ 339.10 million, according to the latest information available. Guillermo de las Casas is the current fund manager and has held this position since April 2010.
Of course, investors look for strong performance in funds. FIREX has a 5-year total annualized return of 10.74% and is in the top third of its category peers. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 10.68%, which puts it in the top third over that time frame.
When looking at the performance of a fund, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 15.55%, the standard deviation of FIREX over the past three years is 15.02%. The fund’s standard deviation over the past 5 years is 12.77% compared to the category average of 12.9%. This makes the fund less volatile than its peers over the past half decade.
With a 5-year beta of 0.66, the fund should be less volatile than the market average. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is worth paying attention to this metric as well. The 5-year performance of FIREX produced a negative alpha of -0.63, which means that the managers of this portfolio are struggling to select stocks that generate returns above the benchmark.
As competition intensifies in the mutual fund market, the costs become more and more important. Compared to its otherwise identical counterpart, a low cost product will outperform, all other things being equal. Thus, it is vital for investors to take a closer look at cost measures. In terms of fees, FIREX is a no-fee fund. It has an expense ratio of 0.98% compared to the category average of 1.22%. So, FIREX is actually cheaper than its peers from a cost point of view.
Investors should be aware that with this product, the minimum initial investment is $ 0; each subsequent investment has no minimum amount.
Overall, Fidelity International Real Estate (FIREX) ranks high for Zacks mutual funds, and in conjunction with its comparatively strong performance, medium downside risk, and lower fees, Fidelity International Real Estate (FIREX ) seems to be a good potential choice for investors. now.
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