4 / 5 Stars
3 1 5 4 1
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#9 in Real Estate
U.S. News evaluated 72 Real Estate Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 4.67 percent over the past year, 9.05 percent over the past three years, 19.12 percent over the past five years, and 6.65 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||4.7%|
|3 Years (Annualized)||9.0%|
|5 Years (Annualized)||19.1%|
|10 Years (Annualized)||6.6%|
This fund's manager, Mark Snyderman, will invest in a combination of real estate stocks, bonds, and corporate mortgage-backed securities (CMBS). "We try to create a mix that creates higher yields and dividends for the investors of the fund than just real estate stocks can do," he says. Currently, the fund is heavy on real estate-oriented bonds and CMBS and light on stocks. Snyderman says he added to the fund's holdings in CMBS over the past year because those securities are offering a higher yield than bonds. Because the fund invests in a mix of stocks, bonds, and CMBS, it will generally hold up better during downturns than its peers. But it also tends to lag a bit when real estate stocks rally. "If you lose a whole lot less money than your competitors in the bad times, your long-term performance ends up being a lot better," he says. Over the past five years, the fund has returned an annualized 3 percent, as of the end of July. The fund's annual fees are 1 percent.
The investment seeks higher than average income; and capital growth is the secondary objective. The fund normally invests primarily in preferred and common stocks of REITs; debt securities of real estate entities; and commercial and other mortgage-backed securities, with an emphasis on lower-quality debt securities. It invests at least 80% of assets in securities of companies principally engaged in the real estate industry and other real estate related investments. The fund may invest in domestic and foreign issuers.
Fees are Above Average compared to funds in the same category.
Fidelity® Real Estate Income Fund has an expense ratio of 1.07 percent.
Risk is Low compared to funds in the same category according to Morningstar.