Fidelity Select Defense & Aerospace Fund (FSDAX)

Fidelity Select Defense & Aerospace Fund (FSDAX) is an industrial sector mutual fund. This domestic stock fund focuses its assets in defense or aerospace companies.

Fidelity Select Defense & Aerospace Fund (FSDAX)

The investment objective of Fidelity Select Defense & Aerospace Fund is to seek capital appreciation. The mutual fund utilizes its assets to purchase common stocks of companies engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. It may invest in domestic and foreign companies.

Fund Details
    Fidelity Select Defense and Aerospace Fund
  • Fund Inception Date: May 8, 1984
  • Ticker Symbol: FSDAX
  • CUSIP: 316390806
  • Beta (3yr): 0.94
  • Rank in category (YTD): 68%
  • Category: Industrials
  • Distribution: 0.63%
  • Capital Gains: 0%
  • Expense Ratio: 0.86%
  • Net Assets: $ 603.20 million
  • Number of Years Up: 22 years
  • Number of Years Down: 4 years
  • Annual Turnover Rate: 0.86%
Updated on 3/23/2013

The Fidelity Fund has total net asset of $603.20 million. It also has a small yield of 0.63% per year. The latest distribution was distributed in the amount of $0.14 (in April 2012). Its annual expense ratio, 0.86%, is lower than the average ratio in the category, 1.32%. This equity fund is rated with 4-stars rating by Morningstar. There is no management fee and no front-end sales load fee for investing in this fund. The current shares price is $85.77 (12/30/2012).

Best Industrials Mutual Funds 2012

For brokerage account and IRA account, investor will need $2,500 initial investment fund to start investing in this fund. This FSDAX fund can be purchased from 76 brokerages like JP Morgan, Schwab Retail, Vanguard, EP Fee Small, Fidelity Retail Funds Network, Royal Alliance, Raymond James, etc. If you have a retirement account (401k or IRA), please check with your account administrator for details.

For the fund performance, this mutual fund has returned 9.17% over the past year and 16.84% over the past 3 years. For long term performance, the fund has returned -0.09% over the past 5 years and 11.69% over the past decade. The fund annual turnover rate as of November 6, 2012 is 56.00%. It is lower than the category average (180.22%). Within the 22 years of the positive return, the best 1 year total return was achieved in 2003 with 38.07%.

This FSDAX fund has a total of 34 holdings as of September 2012. The top 10 represents 68.92% of the total portfolio. They are United Technologies Corp, Boeing Co, Precision Castparts Corp, Raytheon Co, Transdigm Group Inc, Honeywell International Inc, Textron Inc, Esterline Technologies Corp, General Dynamics Corporation and Rockwell Collins Inc.

According to the fund prospectus, the principal investment risks are Stock Market Volatility risk, Foreign Exposure risk, Air Transportation Industry Concentration risk, Issuer-Specific Changes risk, etc.

Disclosure: No Position

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  1. Does Vanguard have an alternative low cost index fund like FSDAX

  2. I don't think Vanguard has a very specific Defense & Aerospace index fund. But you can invest in broader industrials sector through Vanguard Industrials ETF (VIS) or Vanguard Industrials Index Fund Admiral Shares (VINAX). These index mutual fund or index ETF has 22% of assets being invested in Aerospace & Defense (#1 sector).