Mutual Fund & ETF Watchlist for June 22, 2016

Fidelity Select Financials (FIDSX)

SPDR S&P Regional Banking (KRE)

Fidelity Select Insurance (FSCPX)

Fidelity Select Banking (FSRBX)

Fidelity Select Consumer Finance (FSVLX)

Financials rallied with global markets on hopes that Britain will vote to remain in the European Union. European bank stocks, tracked by iShares MSCI Europe Financials (EUFN) have performed very well in the run-up to the Brexit vote, despite the risk of major volatility.

Fidelity Select Biotechnology (FBIOX)

iShares US Pharmaceuticals (IHE)

Biotech and pharma rallied on Wednesday following a non-ruling by the Medicare Independent Payment Advisory Board, reassuring investors that no immediate cuts will impact the sector.

Pharma Chart

SPDR S&P Dividend (SDY)

Vanguard High Dividend (VYM)

SPDR Utilities (XLU)

Dividend funds have outperformed the broader market in 2016 and continue to withstand market volatility admirably.  Funds such as SDY that are overweight utilities have fared better than those with lower exposure.

Fidelity Floating Rate High Income (FFRHX)

DoubleLine Core Fixed Income (DLFNX)

Thompson Bond (THOPX)

The Fed’s decision last week affected the stratification of bond fund returns. THOPX outperformed, followed by DLFNX and then FFRHX. THOPX benefited from the rally in risk assets and the Fed’s dovish outlook on interest rates. DLFNX, which was betting on short-term rates rising in 2016, was slightly hurt by the Fed’s decision, as was FFRHX.

Value vs Growth

SPDR Energy (XLE)

Value shares benefited from last week’s rebound in energy shares, aided by a bounce in oil prices. A large inventory decline reported on Tuesday pushed oil back above $50 a barrel. Internet and technology stocks, such as Google (GOOG) and Apple (AAPL) also boosted Value shares following reports of slowing internet advertising.

The first chart below reflects the relative price performance of SPDR S&P 500 Value (SPYV) versus SPDR S&P 500 Growth (SPYG), with the second line showing the performance of SPDR Energy (XLE).

The second chart illustrates Alphabet’s (GOOG) inverse performance.

Fidelity Low Price Stock (FLPSX)

Fidelity Low Price Stock outperformed both the mid- and small-cap indexes over the past week. Top-ten holding Autozone (AZO) as well as U.S. and U.K. insurance provider Unum Group (UNM) lifted the fund.

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