Is Fidelity Small Cap Value (FCPVX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Report for FCPVX
Small Cap Value fund seekers should consider taking a look at Fidelity Small Cap Value (FCPVX). FCPVX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Zacks categorizes FCPVX as Small Cap Value, which is a segment packed with options. Known for investing in companies with market caps under $2 billion, Small Cap Value mutual funds represent good value because of many things; stocks in these funds offer low P/E ratios, high dividend yields, and better-than-average P/S ratios.
History of Fund/Manager
Fidelity is responsible for FCPVX, and the company is based out of Boston, MA. Fidelity Small Cap Value made its debut in November of 2004, and since then, FCPVX has accumulated about $2.78 billion in assets, per the most up-to-date date available. Derek Janssen is the fund's current manager and has held that role since February of 2021.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 13.28%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 12.74%, 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. FCPVX's standard deviation over the past three years is 25.85% compared to the category average of 17.2%. The standard deviation of the fund over the past 5 years is 20.75% compared to the category average of 14.16%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. FCPVX has a 5-year beta of 1.19, which means it is likely to be more 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. Over the past 5 years, the fund has a negative alpha of -6.04. This means 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 primarily on equities that are traded in the United States.
Right now, 92.6% of this mutual fund's holdings are stocks, with an average market capitalization of $6 billion. The fund has the heaviest exposure to the following market sectors:
- Industrial Cyclical
Turnover is 78%, which means this fund makes more trades in a given year than the category average.
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, FCPVX is a no load fund. It has an expense ratio of 0.97% compared to the category average of 1.25%. FCPVX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Fidelity Small Cap Value ( FCPVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Fidelity Small Cap Value ( FCPVX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Small Cap Value 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 FCPVX to its peers as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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