Hey Viktor,
1) I can get 5 minute values on the holdings, but only 1 hour values on the fund, so that's the real issue. The five minute values give me a heads up for the value at the end of the hour before my trade deadline. More an indicator on direction that anything else.
2) I try to trade as infrequently as possible. So I threw the 30 day figure in really just because I always avoid the 0.75% redemption fee. The real thinking goes into what will happen in the world in 1, 2, 5 and 10 years out. When you pick sectors in that timeframe, you're much more of a buy and hold style investor than a trader.
3) FMR is the research arm of Fido. The make the research recommendations for the fund managers to work with when selecting investment positions. In the case of the Select funds, they try to pick the best stocks in the sector, and then the fund manager decides yea or ney in accordance with his or her specific style. That's what you pay for in the fees on the funds. All those guys in FMR, pouring over reports, financials, news and beating the pavement out to talk with company management. Look at the 5 and 10 year return figures for the funds and you'll probably come to the same conclusion that I did, they do a pretty good job!
Finally, historic return. I would really hate to put any stakes in the stand for my own experience. However, I did read an interesting post on this thread (or was it somewhere else in SI?) not too long ago that goes something like this: If you follow a strategy whereby every six months or a year you rebalance into the best five performing sectors for the previous period you come out somewhere around 30% annually over time. And that doesn't even include doing some homework to figure out what the world is going to need in the future, just a more mechanical approach. Sort of a slow moving momentum play.
Sit down with Fido's big thick prosectus book on all the Select funds sometime and look at the graphs and see how the various sectors correlate and perform over time. Alot depends upon how much time you have to spend on your investments. That's really all I can offer, I've been pleased by the result and received an education at the same time.
Regards,
Larry |
