Is Ffrhx a Good Investment for Your Portfolio

Ffrhx is a type of investment that's worth considering for your portfolio.

Ffrhx has a relatively low expense ratio, which means you'll pay less in fees to invest. This can add up to significant savings over time.

Investing in ffrhx also provides access to a diverse range of assets, which can help spread risk and potentially increase returns.

Ffrhx has a strong track record of performance, with a history of consistent growth and returns.

Fidelity Floating Rate High Income is an actively managed Taxable Bond Bank Loan fund launched by Fidelity Investments in 2002. The investment seeks a high level of current income.

The fund invests at least 80% of its assets in floating rate loans, which are often lower-quality debt securities and other floating rate securities. It invests in companies in troubled or uncertain financial condition, which can be a risk for investors.

The fund invests in money market and investment-grade debt securities and repurchase agreements, providing a mix of low-risk and higher-yielding investments. It also invests in domestic and foreign issuers, diversifying its portfolio across different markets.

Here's an interesting read: Is Fidelity Contrafund a Good Investment

The management team consists of three members with an average tenure of 6.79 years: Eric Mollenhauer (2013), Kevin Nielsen (2018), and Chandler Perine (2022). This level of experience is more important for actively managed funds like FFRHX.

The fund has 636 securities in its portfolio, with the top 10 holdings constituting 16.4% of the fund's assets. This suggests a relatively diversified portfolio, but also highlights the importance of monitoring the fund's holdings over time.

The fund meets the SEC requirement of being classified as a diversified fund, which provides some reassurance for investors. However, it is not considered to have an ESG focus with its investment selection and management.

The fund's bond allocation as a percentage of total assets is 93.6%, with 86.9% of that being domestic bond, 6.7% foreign bond, and 0.0% convertible bond. This is a significant allocation to bonds, which can provide regular income for investors.

Fidelity Floating Rate High Income has a trailing dividend yield of 8.22%, which is above the 8.22% category average. This suggests that the fund is providing a relatively high level of income for investors.

For more insights, see: Is Vanguard Wellington Fund a Good Investment

The Fidelity Advisor Floating Rate High Income Fund, also known as FFRHX, has a legal name that matches its investment strategy.

The fund's inception date is September 20, 2002, which is over 19 years ago.

The fund's manager is Eric Mollenhauer, who has been with the fund since 2013.

Here's a breakdown of the fund's details:

The fund's investment style is a taxable bond, specifically a bank loan fund, which invests at least 80% of its assets in floating rate loans and other floating rate securities.

The fund has a yield of 8.2% and distributes its dividend income monthly, with capital gains distributed annually.

The fund's portfolio composition includes 636 holdings, with the top 10 holdings constituting 16.4% of the fund's assets.

The fund's allocation to domestic and foreign bond holdings is 86.9% and 6.7%, respectively, with a small allocation to convertible bond holdings.

The fund's expense ratio is 0.73%, which is considered below average within its category.

The fund's minimum initial purchase is $0, making it a low-cost investment option.

The fund's true no-load status means that there are no front-end or back-end loads, making it a transparent and cost-effective investment choice.

FFRHX has a portfolio turnover rate of 41%, which is lower than the average portfolio turnover of 58% for the Bank Loan category. This suggests that the fund holds its assets for a longer period, which can lead to lower expenses and higher after-tax returns.

The fund's expense ratio is 0.73%, which is 33% lower than its category average. This makes FFRHX a more cost-effective option compared to its peers. In fact, the fund's expense ratio is lower than the category average for the Bank Loan category.

Fidelity Floating Rate High Income has a grade of A in terms of expense ratio, indicating that it is among the top 20% of funds in its category in terms of expense ratio. This is a significant advantage for investors, as high expense ratios can reduce returns.

Here's a comparison of FFRHX's expense ratio with its category average:

The fund's expense ratio is a key factor to consider when evaluating its performance. While high expense ratios can reduce returns, FFRHX's low expense ratio makes it a more attractive option for investors.

FFRHX has a maximum redemption fee of 0.0%, which is lower than the category average of 1.00% to 2.00%. This suggests that investors can redeem their shares without incurring significant fees.

The dividend yield of FFRHX is a notable aspect of its investment profile, standing at 7.23%. This is a significant indicator of the fund's potential for generating income.

Dividend yield is a crucial metric for income investors, and FFRHX's 7.23% yield is well above the category average.

FFRHX's dividend yield is 48.30% ranked within its category, indicating it's among the top performers in this regard.

A comparison of FFRHX's dividend yield to its category peers shows it's above the category low of 0.00% and below the category high of 11.13%.

The stock sector breakdown is a crucial aspect of investment analysis. It helps you understand which sectors are performing well and which ones are lagging behind.

The Energy sector takes the top spot with a weighting of 90.68%, indicating its significant contribution to the overall market. This sector has seen a return range of 0.00% to 100.00%.

The Consumer Cyclical sector follows closely with a weighting of 7.81%, showcasing its importance in the market. This sector has achieved a return range of 0.00% to 97.66%.

You might like: What Is Considered a Good Return on Investment

Industrials have a relatively small weighting of 1.51%, but still manage to reach a return of 100.00%. This sector ranks 33.04% in the FFRHX % Rank.

Utilities and Technology have zero weighting in the stock sector breakdown, but Utilities has a return range of 0.00% to 100.00%. This sector ranks 73.91% in the FFRHX % Rank.

Real Estate, Healthcare, Financial Services, and Consumer Defense also have zero weighting, but Real Estate has a return of 48.61%. This sector ranks 65.22% in the FFRHX % Rank.

Basic Materials have zero weighting, but have a return of 1.36%. This sector ranks 65.22% in the FFRHX % Rank.

Worth a look: Is Real Estate Crowdfunding a Good Investment

In the world of investments, understanding the different bond sectors is crucial for making informed decisions. The Corporate sector accounts for a significant 90.04% of the bond sector breakdown.

One thing that stands out is the Return Low for Corporate bonds, which is a staggering 0.00%. This means that even in the worst-case scenario, Corporate bonds are likely to retain some value.

Additional reading: Are Bond Etfs a Good Investment

The Cash & Equivalents sector has a much lower weighting of 5.87%, but its Return Low is also 0.00%. This suggests that both Corporate and Cash & Equivalents sectors are relatively low-risk investments.

Interestingly, the Derivative sector has a weighting of 0.00%, but its Return Low is a significant -11.46%. This indicates that while Derivative bonds may not be a significant part of the bond sector breakdown, they can be high-risk investments.

Here's a breakdown of the different bond sectors and their weightings:

The FFRHX % Rank for the Corporate sector is 45.88%, which is relatively low compared to the other sectors. This suggests that while Corporate bonds may not be the best-performing sector, they are still a significant part of the bond sector breakdown.

When analyzing investments, dividend yield is an important metric to consider. In this section, we'll take a closer look at dividend yield analysis.

Dividend yield is the percentage return an investor can expect from a stock's dividend payments. For example, if a stock has a dividend yield of 7.23%, that means the investor can expect to earn 7.23% of the stock's current price in dividend payments each year.

The dividend yield of FFRHX is 7.23%, significantly higher than the category low of 0.00%. This suggests that FFRHX may be a good option for investors seeking higher dividend income.

Here's a comparison of FFRHX's dividend yield to its category peers:

FFRHX's dividend yield ranks 48.30% in its category, indicating that it falls in the middle to lower half of the category in terms of dividend yield.