Is Fidelity International Index Adviser (FSIVX) a Strong Mutual Fund Pick Right Now?

If you're looking for an Index fund category, then a possible option is Fidelity International Index Adviser (FSIVX). FSIVX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FSIVX. The Fidelity International Index Adviser made its debut in October of 2005 and FSIVX has managed to accumulate roughly $11.22 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 4.47%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 9.18%, which places it in the middle third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FSIVX's standard deviation over the past three years is 10.14% compared to the category average of 8.81%. Over the past 5 years, the standard deviation of the fund is 10.67% compared to the category average of 8.72%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. FSIVX lost 57.15% in the most recent bear market and outperformed its peer group by 10.6%. This might suggest that the fund is a better choice than its peers during a bear market.

Investors should note that the fund has a 5-year beta of 0.88, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -6.78. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FSIVX is a no load fund. It has an expense ratio of 0.07% compared to the category average of 0.85%. Looking at the fund from a cost perspective, FSIVX is actually cheaper than its peers.

While the minimum initial investment for the product is $10,000, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Want even more information about FSIVX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.

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