Editor's note: This is part of a continuing series of articles looking at the 20 biggest no-load stock funds.
The prospects for blue chip stocks are bright, but the outlook for Fidelity Blue Chip Growth is hazy. The fund, which invests in large, fast-growing companies, has ranked in the bottom 30% of its peer group in each of the past four calendar years. Over the past decade, it gained 6% annualized, matching the average large-company growth fund, but lagging the S&P 500-stock index by an average of nearly three percentage points a year.
And now the fund has a new manager. After more than a decade at the helm, manager John McDowell retired in November. His co-manager, Brian Hanson, also left, to concentrate on other funds. Enter Jennifer Uhrig, who previously skippered Fidelity Advisor Equity Growth, a load fund with a mission similar to that of Blue Chip Growth. During her nine-year tenure, Equity Growth performed roughly in line with its peers. But while Blue Chip Growth has been stuck in a rut because McDowell and Hanson clung tightly to an out-of-favor style, Uhrig was able to invest in some medium-sized companies at Equity Growth.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In her nearly three months on the job, Uhrig has guided Blue Chip Growth to a 3% gain. That's still a percentage point behind the S&P 500. The fund's top holdings represent a who's who of, well, blue-chip names. They include Johnson & Johnson, Microsoft, Apple and Wal-Mart. Nearly 10% of the fund's assets were recently in pharmaceuticals, including Merck, Wyeth and Schering-Plough. Altogether, health and technology stocks account for half of assets.
Given Uhrig's uninspiring track record, we see no compelling reasons to stick with Blue Chip. Current shareholders should SELL this fund.
FUND FACTS
Fidelity Blue Chip Growth (FBGRX)
Assets: $20.1 billion
Managers (year started): Jennifer Uhrig (2006)
Return (vs. S&P 500)*:
One year: 4.0% (13.3%)
Three years annualized: 4.9% (10.1%)
Five years annualized: 2.5% (7.0%)
Ten years annualized: 5.6% (8.4%)
Expense ratio: 0.63%
Portfolio turnover: 48%
Minimum investment: $2,500
Phone: 800-544-8544
Web site: www.fidelity.com
*Returns through January 30
Fund Fact sources: Standard & Poor's, Morningstar
View updated data for this fund and compare the performance of the 20 biggest no-load stock funds.
Go to A Close Look at the 20 Biggest No-Load Stock Funds.
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
The 5 Best Actively Managed Fidelity Funds to Buy Nowmutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Best Bond Funds to BuyInvesting for Income The best bond funds provide investors with income and stability – and are worthy additions to any well-balanced portfolios.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
-
Do You Have Gun Stocks in Your Funds?ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
