The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: Blackrock versus Fidelity
FSA compares two global financial equity products: the BGF World Financials Fund and the Fidelity Global Financial Services Fund.
Conclusion
The Blackrock fund receives a three-star Morningstar rating, while the Fidelity product receives four stars. Both have an analyst rating of Bronze.
Morningstar’s star rating looks at historically-adjusted performance and the analyst rating is based on forward-looking analysis.
Meakin does not prefer one fund over the other given that both have the same analyst ratings.
However, he points out that the products have different uses in a portfolio.
“They have different roles and it depends on what investors are looking for in the financials sector.
“The Blackrock fund is suitable for investors that can stand extra-volatility or who are looking for a divergence from the index.
“Meanwhile, investors who are looking for a product that is more in line with the index, but at the same time, are looking for downside protection may consider the Fidelity product,” he said.
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