Fidelity Select portfolios come with an average expense of 0.88%, ranging between 0.80% and 1.01%.
“We also believe that if Fidelity were to roll out ETFs, the expense ratios would be lower than the mutual fund offerings, in an attempt to garner assets and benefit from the parent company’s scale,” Rosenbluth added, estimating Fidelity potential offerings with fees comparable to PIMCO‘s Total Return Bond ETF (NYSEArca: BOND) of 0.59% to the 0.85% of the retail mutual fund.
A few comparison between Fidelity Select sector funds and sector ETF options include:
- Biotechs. Fidelity Select Biotechnology (FBIOX) has a 0.83% expense ratio and is up 10.9% over the past five years. In contrast, the SPDR S&P Biotech (NYSEArca: XBI) has a 0.35% expense ratio and gained 9.7% over the past five years.
- Health Care. Fidelity Select Health Care Portfolio (FSPHX) has a 0.80% expense ratio and rose 6.0% over the last five years. The Health Care Select Sector (NYSEArca: XLV) has a 0.18% expense ratio and increased 4.1% over the same period.
- Tech. Fidelity Select Technology Portfolio (FSTPX) has a 0.81% expense ratio and is up 4.8% over the last five years. The Vanguard Informationi Technology ETF (NYSEArca: VGT) has a 0.19% expense ratio and gained 4.8% over the last five years.
For more information on sector funds, visit our sector ETFs category.
Max Chen contributed to this article.