Rising rates have enabled money market mutual funds like the Fidelity Government Cash Reserves to reward investors with better and better yields. Currently, the fed funds rate is 5% to 5.25%, after ten consecutive Federal Reserve interest rate increases since March 2022. Still, this is a solid option for those who desire an actively managed small-cap value fund from a well-regarded fund family. ![]() ![]() Note that the last time the fund paid a dividend was in December 2021, so investors seeking cash flow should look elsewhere. The fund picks small-cap stocks that its managers believe are undervalued in terms of factors such as assets, sales, earnings, growth potential or cash flow.įCPVX has outperformed the Russell 2000 Value Index and its Morningstar peer group over several recent long time periods. As a result, investors who think both the markets and the economy will be challenged this year might want a fund like FCPVX.Īnd no matter how the markets and economy behave this year, if you’re an investor who wants exposure to all corners of the market, FCPVX can be a good way to play small-cap value for the long run. In addition, value stocks tend to outperform during bear markets and economic recessions. How so? Small-cap stocks have outperformed large caps since 1926 in terms of average annual return. The Fidelity Small Cap Value Fund could be a timely strategic way to play the market. Shareholders looking for a fund that lets them invest in accord with their values, while receiving competitive returns and dividend yield while paying a relatively low annual fee, might consider FITLX. Healthcare stocks, financial services and consumer discretionary are its next three favorite sectors. The fund’s favorite sector currently is tech with roughly a quarter of its money at work there. ![]() It tilts toward large-cap stocks, while mid-cap stocks are a second favorite. Still, it’s otherwise diversified, with about 270 total holdings. This boosts the fund’s dependence on the performance of these names. Due to demands of the fund’s ESG benchmark index, prominent companies including Apple (AAPL), (AMZN) and Berkshire Hathaway (BRK.B) are not in this fund’s portfolio.įITLX’s top 10 holdings make up roughly one third of the total portfolio. Investors who strive to own companies that meet environmental, societal and governance metrics will appreciate the low annual fee and decent dividend yield offered by the Fidelity U.S.
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