LemonTrades
TL;DR
- FSAGX is an actively managed Fidelity mutual fund that holds mostly gold miners, with up to 25% in bullion.
- It behaves like a mining fund, swinging more than gold, and costs more than the cheapest gold ETFs.
- LemonTrades tells you what moved gold, the biggest driver of FSAGX, as it happens.
Fidelity Select Gold Portfolio (ticker FSAGX) is an actively managed mutual fund that invests mainly in gold mining companies, with a slice in gold itself. It’s been around since 1985. Here’s how it works.
What the fund holds
- It normally invests at least 80% of its assets in companies principally engaged in gold-related activities and in gold bullion or coins.
- It can hold up to 25% in gold and other precious metals through a wholly owned subsidiary.
- Most of the portfolio is mining company stocks, picked by a portfolio manager rather than tracking an index.
So it behaves mostly like a gold mining fund, not like gold itself: it usually rises and falls more than the gold price.
What it costs
Its yearly expense ratio has been reported at about 0.6% to 0.8%, depending on the source and date, above the cheapest gold ETFs (0.10% to 0.40%) and close to mining ETFs like GDX. Check Fidelity’s own page for the current figure. At Fidelity there’s typically no fee to buy it; other brokers may charge one.
FSAGX vs GDX vs GLD
- FSAGX: active management, mostly miners plus some bullion, priced once a day, possible capital gains distributions at year end.
- GDX: an index of large gold miners, traded all day, with options.
- GLD and other gold ETFs: gold bars only, so they track the metal, not companies. See the best gold ETFs.
Who it might suit
- Investors at Fidelity who want gold mining exposure in a mutual fund, with active stock picking.
- Long-term holders comfortable with big swings: gold miners can fall 30% or more in a bad year for gold.
It’s less suited to active traders (it trades only at the daily price) or to anyone who wants gold’s price rather than miners’. For that, a gold ETF or bullion is more direct.
Taxes
As a mutual fund, it can pay out dividends and capital gains each year, which are taxable in an ordinary account even if you don’t sell. Check with a tax professional, and see precious metals stocks for how miners behave.
Sources
- Fidelity Select Portfolios summary prospectus (SEC filing)
- AAII: FSAGX fund summary
- Minafi: FSAGX vs GDX
Education, not financial advice. We’re not affiliated with Fidelity. Fund details change; read the current prospectus before investing. See our disclaimer.
