This week, the housing market was once again in the spotlight. On Monday, we saw a 1.2% increase in existing home sales for February, compared to a 4.9% decline in January. On Tuesday, February new home sales increased 8% – the highest jump in seven years.The continued recovery of the housing market has helped home builders, as well as other real estate related businesses.
We have chosen the Fidelity Select Construction & Housing Portfolio (FSHOX) for this week’s fund of the week.
Inside the Fund
The fund was launched in 1986 and is managed by Holger Boerner. Currently, it has about $419 million in assets under management (AUM).
The fund is composed of stocks from from the consumer cyclical, industrials, real estate and basic materials sectors.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|
| 21.54% | 2.89% | 38.01% | 21.25% | 15.74% |
Largest Holdings
Nearly half of the fund’s assets are in its top five holdings. While these securities are primarily home improvement retailers and real estate investment trusts (REITs), the fund boasts holdings from all corners of the home builder industry.
| Symbol | Stock | Portfolio Weight | 2015 Performance |
|---|---|---|---|
| HD | Home Depot | 24.68% | +11% |
| LOW | Lowe's | 11.33% | +10% |
| UDR | UDR Inc | 4.49% | +13% |
| ESS | Essex Property Trust | 3.98% | +15% |
| ACC | American Campus Communities | 5.21% | +3% |
The Bottom Line
For investors seeking exposure to the housing market, this fund could be a good and balanced choice. The fund allows investors to gain exposure to real estate, home improvement retailers, material companies and home builders.
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