If you’re looking for a solid way to diversify your portfolio, you might want to consider the energy sector.
But what’s the best fund to buy? Fidelity Select Energy Portfolio (FSENX) or Vanguard Energy Fund (VGENX)?
We’ll help you answer that question in this article.
VGENX: Vanguard Energy Fund
VGENX is a mutual fund managed by Wellington Management Company LLP. It invests in a portfolio of energy stocks, including companies like Valero Energy Corporation, ConocoPhillips, ExxonMobil Corporation, and Chevron Corporation.
VGENX has an expense ratio of 0.41% and a minimum investment of $3,000.
What Is the Fidelity Equivalent of VGENX?
The Fidelity equivalent of VGENX is Fidelity Select Energy Portfolio (FSENX).
Similar to VGENX, this fund invests in companies specializing in oil, gas, electric, and coal. In addition, FSENX also capitalizes on the growth of newer energy sources such as nuclear, geothermal, oil shale, and solar power.
The Fidelity Select Energy Portfolio is a good option for anyone who wants to invest in the energy sector but doesn’t want to pick their own stocks.
60% of FSENX ‘s total portfolio is made up of the following stocks.
FSENX vs. VGENX: Key differences
The differences between the two mutual funds are very slim. But still necessary to point out.
FSENX has a higher expense ratio than VGENX (0.77% vs. 0.41%). For every $10,000 invested in the Fidelity Select Energy Portfolio, you’ll be paying Fidelity $77 per year.
Furthermore, FSENX is bigger than VGENX in terms of assets under management ($2.77 billion vs. $1.90 billion).
|Funds||Vanguard Energy Fund Investor Shares||Fidelity® Select Energy Portfolio|
|Price||46.74 (NAV)||54.34 (NAV)|
|3-year total return||+4.59%||+20.14%|
|3-year standard deviation||27.12%||43.05%|
|Min. initial investment||3,000.00 USD||0.00 USD|
|Net expense ratio||0.41%||0.77%|
|Total net assets||1.90bn USD||2.77bn USD|
|Morningstar category||Equity Energy||Equity Energy|
When we looked at the performance of these two, we found that the Fidelity fund has been outperforming the Vanguard fund since the beginning of 2021.
In conclusion, FSENX is an excellent alternative to VGENX if you want exposure to the energy sector.