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Fund of the Week: Fidelity® Select Construction & Housing Portfolio (FSHOX)

Shauna O'Brien Mar 25, 2015

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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