When the stock market crumbled in 2008, financials led the way down. The sector plunged 55% that year, compared with a 37% loss for Standard & Poor’s 500-stock index. Fidelity Select Home Finance was loaded with companies at the epicenter of the financial crisis, such as Fannie Mae and Freddie Mac, and plummeted 59%. But the fund, now called Fidelity Select Consumer Finance> (symbol FSVLX), switched gears after the Great Recession ended in 2009; it revamped its holdings and climbed to the top of the one-year performance leaders among financial sector funds (along with two other Fidelity funds).
Manager Shilpa Mehra, who took the helm in 2012, says that an emphasis on credit card companies, which facilitate the “electronification” of global payments, boosted performance. Indeed, Visa and MasterCard were the fund’s biggest holdings at last report. Also aiding results were stocks of companies that benefit from low interest rates, such as Ocwen Financial and Altisource Portfolio Solutions, which provide services to the real estate industry. The fund has one-third of its assets in commercial bank stocks.
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.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
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.
