Any investors who are searching for Mutual Fund Equity Report funds should take a look at Fidelity Mid Cap Enhance Index Fund (FMEIX). FMEIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
History of Fund/Manager
Fidelity is responsible for FMEIX, and the company is based out of Boston, MA. Fidelity Mid Cap Enhance Index Fund made its debut in January of 2008, and since then, FMEIX has accumulated about $1.79 billion in assets, per the most up-to-date date available. A team of investment professionals is the fund’s current manager.
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 8.17%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.94%, which places it in the top third during this time-frame.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FMEIX over the past three years is 23.52% compared to the category average of 23.69%. Looking at the past 5 years, the fund’s standard deviation is 20.67% compared to the category average of 21.01%. This makes the fund less volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.08, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FMEIX has generated a negative alpha over the past five years of -2.88, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
This fund is currently holding about 93.67% stock in stocks, which have an average market capitalization of $23.30 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
Turnover is 116%, which means, on average, the fund makes fewer trades than the average comparable fund.
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FMEIX is a no load fund. It has an expense ratio of 0.51% compared to the category average of 0.79%. FMEIX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Don’t stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FMEIX to its peers as well for additional information. And don’t forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.