Sector-focused mutual funds allow investors to gain exposure to specific sectors without purchasing individual stocks. These funds can be a great opportunity for investors if a sector is outperforming, but they can also carry more risk as these funds are less diversified. Below, we highlight some of the best performing sector mutual funds of 2014. *All Data as of Nov. 30.
Fidelity Select Electronics Portfolio (FSELX)
The Fidelity Select Electronics Portfolio (
FSELX) fund was launched in 1985 and is managed by Stephen Barwikowski. The fund’s holdings are primarily in the technology sector. The fund currently has approximately $2 billion in assets under management (
AUM).
YTD, this fund is up 35%.
Largest Holdings
| Symbol |
Company |
Portfolio Weight |
YTD Performance |
|
INTC
|
Intel
|
9.23%
|
+44%
|
|
BRCM
|
Broadcom
|
8.40%
|
+47%
|
|
TXN
|
Texas Instruments
|
6.41%
|
+25%
|
Intel (INTC) – Shares of Intel are up nearly 80% in the last year-and-a-half as many investors continue to have confidence in the company.
Broadcom (BRCM) – Broadcom surged in May after it announced that it was seeking strategic alternatives for its Cellular Baseband Business. In 2014, its stock price rose 47%.
Texas Instruments (TXN) – TXN dipped in October, but surged after releasing its Q3 financial results. In 2014, the stock rose about 25%.
Janus Global Life Sciences (JAGLX)
The Janus Global Life Sciences (
JAGLX) fund was launched in 1998 and is managed by Andrew Acker. The majority of the funds holdings are based in the healthcare sector. This fund currently has $3.1 billion in assets under management (
AUM) and is up 23%
YTD.
Largest Holdings
| Symbol |
Company |
Portfolio Weight |
YTD Performance |
|
GILD
|
Gilead Sciences
|
3.36%
|
+30%
|
|
VRX
|
Valeant Pharmaceuticals
|
2.68%
|
+21%
|
|
CELG
|
Celgene Corp
|
2.57%
|
+35%
|
Gilead Sciences (GILD) –
GILD surged with biotech in 2014. This upside was partially offset by news that Express Scripts had
chosen AbbVie’s Hepatitis C Drug Over Gilead.
Valeant Pharmaceuticals (VRX) – After a volatile year, Valeant ended 2014 close to all time highs.
Celgene Corp (CELG) – In 2014, Celgene jumped with biotech. The stock rose over 35% in 2014.
Fidelity Select Transportation (FSRFX)
The Fidelity Select Transportation (
FSRFX) fund was launched in 1986 and is managed by Matthew Moulis. The fund’s holdings are primarily in the industrials sector, specifically the transportation industry. This fund currently has $1.1 billion in assets under management (
AUM) and is up 30%
YTD.
Largest Holdings
| Symbol |
Company |
Portfolio Weight |
YTD Performance |
|
UNP
|
Union Pacific
|
18.29%
|
+50%
|
|
UPS
|
United Parcel Service
|
11.91%
|
+7%
|
|
DAL
|
Delta Air Lines
|
5.99%
|
+76%
|
Union Pacific (UNP) – Despite a couple of dips, Union Pacific jumped 50% in 2014 – benefiting from low energy prices.
United Parcel Service (UPS) – Although UPS dipped in the beginning of 2014, the low energy prices resulted in the company finishing the year near all time highs.
Delta Air Lines (DAL) – Like many of its peers in the airline industry, Delta surged in 2014.
The Bottom Line
The funds above were a part of the best performing mutual funds so far in 2014. For a complete list,
click here.
