The difference between the Fidelity Advisor Technology Fund (FATIX) and the Fidelity Select Semiconductors Portfolio (FSELX) lies in their investment focus, risk profiles, and performance characteristics. Here's a breakdown of the key differences:
- Investment Focus:
- FATIX: Focuses on the technology sector, which includes a wide range of stocks involved in the creation, manufacturing, and dissemination of technology-related products and services12. This sector is known for its high growth potential but also significant volatility.
- FSELX: Concentrates on the semiconductor industry, which is a sub-sector of the technology industry34. Semiconductor stocks are characterized by high research and development costs and are sensitive to global economic conditions and technological advancements.
- Risk Profile:
- FATIX: Has a slightly higher expense ratio of 0.68% compared to FSELX's 0.65%. This indicates that FATIX may have a more active or specialized investment approach within the technology sector.
- FATIX also has a higher 5-year beta of 1.2, suggesting it is more volatile than the market average1. This is consistent with the technology sector's inherent volatility.
- FSELX has a slightly lower 5-year beta of 1.45, indicating it may be somewhat less volatile than FATIX, but still more volatile than the market average due to its focus on the semiconductor sector3.
- Performance Characteristics:
- FATIX: Has a 5-year annualized total return of 25.05%, which is robust but lower than FSELX's 29.84%13. This suggests that while FATIX is performing well, FSELX may be outperforming it in terms of returns.
- FATIX has a higher standard deviation of 25.13% over the past three years compared to FSELX's 37.03%13. This indicates that FSELX may be experiencing more extreme price swings due to its semiconductor sector focus.
- Sector Dynamics:
- FATIX: Benefits from the broader technology sector, which is currently experiencing a boom in artificial intelligence, machine learning, and related sectors5.
- FSELX: Capitalizes on the growth in the semiconductor industry, which is rebounding due to increased demand and easing price pressures4.
In summary, while both funds are part of the Fidelity family and offer exposure to technology-related investments, FATIX's focus on the broader technology sector and slightly higher expense ratio give it a slightly more aggressive and potentially more volatile profile compared to FSELX's focus on the semiconductor sub-sector. Investors should consider their risk tolerance, investment horizon, and the specific risks associated with each sector when choosing between these two funds.
11/4/2024 07:11pm
