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Is Fidelity Equity Dividend Income (FEQTX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Large Cap Value category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Equity Dividend Income (FEQTX - Free Report) . FEQTX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FEQTX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FEQTX. The Fidelity Equity Dividend Income made its debut in August of 1990 and FEQTX has managed to accumulate roughly $5.56 billion in assets, as of the most recently available information. The fund's current manager, John Sheehy, has been in charge of the fund since April of 2017.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FEQTX has a 5-year annualized total return of 11.03% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.22%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 FEQTX over the past three years is 15.29% compared to the category average of 15.4%. The fund's standard deviation over the past 5 years is 17.97% compared to the category average of 16.86%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.87, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FEQTX's 5-year performance has produced a negative alpha of -2.04, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FEQTX is a no load fund. It has an expense ratio of 0.55% compared to the category average of 0.93%. Looking at the fund from a cost perspective, FEQTX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Equity Dividend Income ( FEQTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Equity Dividend Income ( FEQTX ) looks like a good potential choice for investors right now.
Want even more information about FEQTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is Fidelity Equity Dividend Income (FEQTX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Large Cap Value category, but where should you start your research? Well, one fund that might be worth investigating is Fidelity Equity Dividend Income (FEQTX - Free Report) . FEQTX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FEQTX is one of many Large Cap Value mutual funds to choose from. These funds invest in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This strategy can often produce low P/E ratios and high dividend yields; growth levels; however, growth levels are oftentimes cut back. These funds'high growth opportunities are slowed even more since large-cap stocks are usually in more stable industries with low to moderate growth prospects. Thus, investors interested in a stable income stream fund Large Cap Value funds very appealing.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FEQTX. The Fidelity Equity Dividend Income made its debut in August of 1990 and FEQTX has managed to accumulate roughly $5.56 billion in assets, as of the most recently available information. The fund's current manager, John Sheehy, has been in charge of the fund since April of 2017.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FEQTX has a 5-year annualized total return of 11.03% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.22%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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 FEQTX over the past three years is 15.29% compared to the category average of 15.4%. The fund's standard deviation over the past 5 years is 17.97% compared to the category average of 16.86%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.87, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FEQTX's 5-year performance has produced a negative alpha of -2.04, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FEQTX is a no load fund. It has an expense ratio of 0.55% compared to the category average of 0.93%. Looking at the fund from a cost perspective, FEQTX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Fidelity Equity Dividend Income ( FEQTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Fidelity Equity Dividend Income ( FEQTX ) looks like a good potential choice for investors right now.
Want even more information about FEQTX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.