Posted inHead To Head

HEAD-TO-HEAD: Blackrock versus Fidelity

FSA compares the Blackrock Euro Corporate Bond Fund and the Fidelity Euro Corporate Bond Fund.
by Francis Nikolai Acosta

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Conclusion

The Blackrock fund receives a Morningstar analyst rating of Silver and a five-star rating, while the Fidelity fund receives a Bronze analyst rating and a four-star rating.

Morningstar’s analyst rating is a forward-looking analysis of a fund, while the star rating looks at historical-adjusted performance.

Dobrescu did not say which fund she prefers, but instead referred to the analyst rating.

“We have a higher conviction on the Blackrock fund, which is reflected through its Silver rating, which is higher than Fidelity’s Bronze rating,” she said.

Dobrescu highlighted Blackrock’s better risk-adjusted returns as well as its lower fees, which explains its higher rating.

That said, Dobrescu noted that Fidelity’s rating is still high. “We rate a lot of funds in this category, and having a high rating means we think that a strategy is one of the most predictable in their category and has the potential to outperform long-term.”

The Fidelity fund’s yield of 2.87% is also far higher than Blackrock’s 1.61%.

She added that that Fidelity fund may be suitable for investors who could take more risk, given that the fund is very concentrated.

“They would have to tolerate a little bit more risk and choppy performance. But for investors who have the patience with a long investment horizon, it is a strong proposition.”

 

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