Fund Evaluator:

Fidelity Select Health Care Overview

Fidelity Select Health Care (FSPHX) is an actively managed Sector Equity Health fund. Fidelity Investments launched the fund in 1981.

The investment seeks capital appreciation. The fund invests at least 80% of assets in securities of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. It invests primarily in common stocks. The fund invests in domestic and foreign issuers. It uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions to select investments. The fund is non-diversified.

About Fidelity Select Health Care (FSPHX)

There are 1 members of the management team with an average tenure of 17.76 years: Edward Yoon (2008). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and MSCI US IMI/Health Care 25-50 GR USD index with a weighting of 100%. Fidelity Select Health Care has 152 securities in its portfolio. The top 10 holdings constitute 38.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Fidelity Select Health Care is part of the Equity global asset class and is within the Sector Equity fund group. Fidelity Select Health Care has 5.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 92.1%. There is 5.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.4% (0.3% domestic bond, 0.1% foreign bond and 0.0% convertible bond). Fidelity Select Health Care has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $6 billion in total assets, which is above the $869 million average for the Health category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FSPHX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Select Health Care expense ratio is above average compared to funds in the Health category. Fidelity Select Health Care has an expense ratio of 0.62%, which is 49% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Select Health Care has a portfolio turnover rate of 69%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 61% for the Health category.

Recently, in the month of June 2026, Fidelity Select Health Care returned 11.4%, which earned it a grade of A, as the Health category had an average return of 8.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Fidelity Select Health Care has a trailing yield of 0.41%, which is above the 0.39% category average. The fund normally distributes its income semi-annually and its capital gains semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Select Health Care Grades

Year to date, the fund has returned 9.3%, 1.7 percentage points better than the category, which translates into a grade of B. The fund has returned 29.6% over the past year (grade of B), 9.8% over the past three years (grade of B) and 4.1% per year over the past five years (grade of D) and 10.8% per year over the past 10 years (grade of B).

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