I have a small position in FSPHX and have had it for a while. I've been taking a closer look at FSMEX and I can't come up with a reason to keep FSPHX over FSMEX. Using premium... PRHSX and SHSAX along with a newcomer I've been watching ETIHX comes up. But it just seems FSMEX is far and away the consistent performer - looking at APR vs. Peer, Ulcer, Martin and DD. It has been outperforming my current FSPHX which had a tough 2020 in the vs. peer category. That said, it's beaten the S&P 500 consistently since it's inception. But so has FSMEX.
Just wondering if anyone has an opinion.
Over the years, I have owned most of the funds you mentioned, but FSMEX stand out.
I like the idea of investing in the technology of healthcare (for the most part). It appears to be a niche that has a very long run ahead.
ytd 1 YR return SD
ARKG 19% 211% 38
PTH 18 94 27
FSMEX 9 37 18
It works for me.
I thought it was something like that. I know several others have recommended it in the past.
One thing I’ve learned over the last couple of years... is to not be so sentimental with funds and keep them just because of past or even current performance when there are better ones out there outperforming and it’s “easier” (lazy) to just keep the one you have.
Also hold IHI, which may benefit even further once elective procedures regain their pre-Covid status
I keep looking at PRHSX as well but am unsure of the manager changes that have occured since Kris Jenner left. Overall they have been pretty consistent, though. Some posters to the board here - have both funds which may be the way I should play it if I can't decide between the two. I would just rather simplify and have less funds these days.
Inclined to sell my FSPHX for FSMEX but I didn't like the MFO rating drop to 3 for this Great Owl fund- FSMEX.
Maybe it has something to do with the category percentile ranking of 30???
Profitable investing with whatever you decide!
Since the 2010 census, about 10,000 baby boomers a day (retire, too) have crossed the age 65 threshold and by 2030, all boomers will be at least age 65. From 2019 data the boomers are about 72 million in population. Our house is boomers x 2. While there are now and will be failures of individual holdings within healthcare, I still fully consider this a growth area for equity. These folks will require more maintenance than the under 40 age group, yes? There will be the fails of hospitals, health insurance companies and the best laid plans for the next magic drug. There will likely also be continued mergers and acquisitions of big and small companies in many areas. This sector has had its recent funky periods (2015-2016), so it is not a slam dunk; but I still have faith in the broad sectors.
From the devils advocate perspective, One would have to perform an overview of personal holdings to discover how much exposure your holdings have to healthcare now and how much you desire. The 3 below breakdowns give a hint to health sectors from various funds.
Our own personal perspective is provide equity exposure that is meaningful to performance of the entire portfolio. We generally do not hold less than 10% of total portfolio in a given investment area. Performance may allow this number to become 25%; but this is an individuals judgement; based upon portfolio risk and faith in the sector.
Our healthcare holdings travel the road between United Healthcare and genomics and whatever else is in the mix. The healthcare holdings over the years has more than paid for our supplemental insurance plans via United Healthcare. Invest in what you (and many others) use.
Though FSMEX is currently open, the last hard close was a no-notify close at the end of a business; without a grace period.
Lastly, if one were to have a full tour of various medical areas in a large hospital; you'd be able to view a large number of products from companies where you hold investments.
My 2 cents worth.
AS OF 12/31/2020
FSPHX Portfolio Weight
Health Care Equipment 20.25%
Managed Health Care 18.10%
Health Care Services 8.04%
Life Sciences Tools & Services 6.93%
Health Care Technology 1.51%
Health Care Facilities 1.36%
Application Software 0.65%
Research & Consulting Services 0.29%
Other Diversified Financial Services 0.08%
Investment Banking & Brokerage 0.02%
FSMEX Portfolio Weight
Health Care Equipment 55.23%
Life Sciences Tools & Services 23.09%
Managed Health Care 5.75%
Health Care Supplies 3.90%
Health Care Technology 3.79%
Health Care Services 3.46%
Application Software 0.86%
Insurance Brokers 0.52%
Apparel, Accessories & Luxury Goods 0.38%
Research & Consulting Services 0.36%
Investment Banking & Brokerage 0.03%
FSPGX Portfolio Weight (likely a typical growth index weighting)
Information Technology 44.88%
Consumer Discretionary 16.67%
Health Care 13.49%
Communication Services 10.99%
Consumer Staples 4.53%
Real Estate 1.61%
Multi Sector 0.54%
I must add this note about our equity portfolio. Our entire portfolio is within tax deferred accounts: being traditional and Roth IRA's; and of course, we do not have to take into account any taxable sells. This status must also be a consideration when shuffling monies around, yes?
You also mentioned a change in the MFO rating for FSMEX. I can not offer an opinion one way of the other about the implication of this change.
Only my personal opinion. I do not rely upon star rating changes via M*. I watch for performance changes in a given investment and its related sector. Management or style changes with an investment could also have an impact, be it negative or positive. This gives me enough information to make decisions.
As mutual fund buys and sells close at the end of a business day pricing, I forgot to add that if you choose to invest in FSMEX on a given start day, you may observe the etf IHI pricing through the trade day to give a very close reference of what pricing may be for FSMEX at the end of a business day.
This is a reply to Derf from Jan. 18, which includes some info about Fido select trading. A bit of other not related chat, too.
I don't recall the start date for phone trading of select funds, but did use this feature for a pencil performance chart I kept for each week ending pricing. I still have the darn papers.
[email protected] You try'in to overload an oldtimers brain cells....???
I recall reading a few articles in Barron's or WSJ about the Beardstown Ladies investment club.
About the coworker investment club: the life span was a portion of 1985 through a portion of 1991. As most funds required $2,500 to invest (exception was FCNTX); we had to get to that point for a purchase of a fund. The goal was met in short fashion. The initial monies went into a MM Cash Reserves fund that had a 1988, 7 day yield of 7.2%.
Additionally for the funds of this time period, is that many had a 3% (one time) front load and some had redemption fees up 1.5% within the first 12 months of purchase. This was still better than many of the prominent big houses at the time.....a Merrill Lynch, etc. The E.R. range was from .83 through 2%. The Select funds might also have a $75 trading fee. Select funds at the time could be bought and sold on the hour throughout the business day. Transactions were performed through F.A.S.T. (Fidelity Automated Service Telephone) using a touch-tone phone.
All investments were through a Fidelity account and only used their mutual funds.
I can offer a few trinkets about this period (1985-1991) and investing. As noted previous, Fidelity had already established numerous "select" funds; the front runners of sector funds or what are named thematic today.
To the best of my recall, we used the following funds during this period:
---Cash Reserves, MM
---Select American Gold (later merged in Precious Metals)
---Select Health Care
---Captial & Income, (junk bonds and related) FAGIX
We didn't trade often, mostly due to the fees. We also escaped, without harm, during the Oct., 1987 market melt, as we did not sell anything, and our position in American Gold provided a +40 in 1987 to provide a balance.
My recall for the time frame of the club is 10-12% annualized. As members of the club placed different amounts each month, each member had a percentage of ownership when the club was dissolved; and the total profits were dispatched to each member, along with their tax form for the year.
I'm sure I've missed something I thought about previously, but a fun flashback.
Also, and many may know this, but the Fido Select Sector funds do not seem to have a redemption fee if held for under 60 days.
I hold FSMEX as the single holding in my wife’s Fido only 403b (which she can no longer add to, and which is only about $5K). Good fund! Sold out of it in my own portfolio for FBIOX among others. Sorry I did that! I also bought a small piece of the Fido Healthcare Disruptor fund to see how it does.
Also, EDOC is the ETF that focuses on telemedicine and related stocks, if anyone is interested.
Fidelity Excessive Trading Policy, September, 2020
SEE/READ FOLLOWUP in next post from me, regarding the Excessive Trading Policy. I write this at 4pm, Feb. 20.
As time allowed today, I reviewed the prospectus for FSMEX (a select fund), as well as FBALX and FPURX; more traditional mutual funds.
The Excessive Trading Policy link I posted previous and dated Sept. 2020 and the language within is not described within the full prospectus for the 3 funds in this write.
FSMEX prospectus is dated April, 2020 and both FBALX and FPURX are dated Oct. 2020.
While at the Fido site (no login required) one should search for fund "x". Once open/displayed, select the prospectus TAB; which will pull up the summary prospectus. Select the "prospectus" tab from this new window. With this open, select " Additional Information about the Purchase and Sale of Shares" found along the left edge.
There is a conflict of information about what constitutes a possible problem with round trip transactions and time frames; RELATIVE to the Sept. 2020 link I posted 2 sections back. A phone call will be needed to clarify what/which is true.
Note: We're not frequently money movers, but our transactions would be more than $10k.
Now.........how many call centers/at home staff are being overrun from having to re-route calls due to weather or volume problems?
Anyhoo, I needed to clarify what I had posted previous; as I don't want anyone to be misdirected with information. The question/thought provided a needed exercise in due diligence; and to always read a prospectus, or sections thereof.