The Equal-Weighted S&P Index (RSP) has returned 14%
and 9%, on average, annually, over the past three and five years.
In this column, I’m going to describe three mutual
funds that have not only soundly beat those numbers, but just to
assure that they are continuing their winning ways, all three have
generated double-digit year-to-date returns.
While past results don’t necessarily predict the
future, these three funds have a reasonable shot at future
All are no-load funds, meaning there are no sales
commissions and have no minimum investment requirements. So they are
buyer friendly. All three are Fidelity funds because they were the
only funds meeting my performance requirements that weren’t targeted
to institutional investors and requiring $100,000 opening balances.
In fact, all three have no minimum opening investment requirement.
If you’d rather buy individual stocks than mutual
funds, I’ve included each fund’s top five holdings. Here are the
funds. All return data mentioned here is as of June 28.
Millennium (FMILX): Holds both growth and
value-priced stocks in a variety of sectors, although tech stocks
account for 27% of holdings.
Biggest holdings include Apple
(AAPL), Microsoft (MSFT), Exxon Mobil (XOM), Alphabet (GOOG), and
Eli Lilly (LLY). With a portfolio annual turnover rate of only 12%,
this fund follows and buy and hold strategy. The fund had returned
14% year-to-date, and averaged 21% and 11% annually over the past
three and five years. Dividend yield is 1.5%.
Fidelity Select Leisure (FDLSX):
Consumer cyclicals (retail stores and lodging) account for 94% of
portfolio holdings. Not buy and hold, this fund, with a 46% annual
portfolio turnover rate, holds mostly mid-to large-cap growth
stocks. Its five biggest holdings include McDonald’s (MCD), Booking
Holdings (BKNG), Starbucks (SBUX), Hilton Worldwide (HLT) and Yum
Brands (YUM). The fund has returned 18% year-to-date, and averaged
21% and 12% annually over the past three and five years. Dividend
yield is 0.4.
Construction & Housing (FSHOX): Consumer
cyclicals, at 52%, and industrials at 29%, dominate the portfolio.
Also a long-term player, its portfolio turnover ratio is only 20%.
Its two biggest
holdings, Home Depot (HD) and Lowes Companies (LOW) together account
for 33% of the total portfolio. They are
also its longest term holdings: Home Depot was added to the
portfolio in April 1988 and Lowes was added in August 2005. Filling
out the top five are Johnson & Johnson (JNJ), Trane Technologies (TT)
and Invitation Homes (INVH. The fund has returned 17% year-to-date
and averaged 31% and 17% annually over three and five years.
Dividend yield is 0.8%.
Those are my ideas. As always, past performance
doesn’t necessarily predict future returns. Do your own due
diligence. The more you know about your investments, the better your