Fidelity Low-Priced Stock Fund Holdings: The Fidelity Low-Priced Stock K6 (FLKSX) Fund was first introduced on May 25th, 2017, courtesy of Fidelity Investments.
This fund was put together by the Fidelity Management & Research Company, led by Joel Tillinghast and co-managed by Sam Chamovitz, Morgen Peck, John Mirshekari, Shadman Riaz, Salim Hart, Katherine Buck, and Justin Bennett. The first six managers are still in charge of this fund to this day.
The FLKSX Fund stands for The Fidelity Low-Priced Stock (FLPSX) Fund. It’s a mutual fund that aims to represent mid-cap value equity holdings..
In 2019, the FLKSX fund earned a Morningstar Analyst Silver Rating.
Analysts at Morningstar have raved about this fund for its competitiveness compared to other funds as well as having unprecedented performance compared to its peer group.
More About the Fidelity Low-Priced Stock K6 Fund
The purpose of the FLKSX fund is to seek capital appreciation. Investors use this fund typically to invest in common stocks.
This fund invests primarily in mid-sized companies with market caps between two and ten billion dollars.
It focuses also on low-priced stocks that are usually priced at 35 dollars per share or less, and with an earnings yield at the median or higher for the Russell 2000 index.
You can use the FLKSX fund to invest in domestic or international issuers, as well as investing in “growth” stock and/or “value” stocks.
Securities of smaller holdings are considered to be more volatile compared to larger holdings so when markets fall, this fund may experience steeper declines.
Fidelity Low-Priced Stock Fund Fees and Yield
The fund’s yield and expense ratios vary based on how three-year returns measure up compared to the Russell 2000 Index.
FLKSX focuses on companies that have strong leadership, little debt, and demonstrate growth.
Stocks priced below $35 or with a 12-month earnings yield exceeding that of the Russell 2000 Index are known to be attractive to Tillinghast and Fidelity.
Fidelity Low-Priced Stock Fund Holdings
Shares of over 800 companies from around the world make up a big portion of the fund.
Of these companies, almost a quarter of them specialize in retail and consumer products. The other three quarters come from sectors like healthcare, technology, and banking as well as energy and industrial.
The top 10 holdings of FLKSX include the following:
- UnitedHealth Group Inc. (UNH)
- Ross Stores Inc. (ROST)
- Seagate Technology PLC. (STX.SI)
- Best Buy Co. Inc. (BBY)
- Metro Inc. (MRU.TO)
- Next PLC (NXT.L)
- AutoZone Inc. (AZO)
- Amgen Inc. (AMGN)
- Metlife Inc. (MET)
- Barratt Developments PLC (BDEV.L)
UnitedHealth is the top holding comprising around 5 to 6 percent, while hundreds of other companies make up just a fraction of a percent in the FLKSX fund.
Of the more than 800 securities that feature in the FLKSX fund, over 90 percent of them are stocks. Indeed, stocks and cash make up 99.98 percent of all the investments in this portfolio.
Almost 60 percent of these companies are from the United States alone. This is then followed by Japan, England, Taiwan, and the Netherlands.
Fidelity Low-Priced Stock Fund Returns
Morningstar has rated the FLKSX fund returns as “high”, meaning that investors experience favorable returns in durations of one, three, five, and ten years. The fund is therefore suitable for short-term and long-term oriented investors.
As with all of Fidelity’s funds, the aim is to deliver attractive returns with no unpleasant surprises.
Is FLKSX Worth Buying?
For investors aiming to snap up a bucket of low-priced shares with solid fundamentals, FLKSX is a buy. The fund may lag the performance of the market when high growth companies are in vogue, however.
Morningstar has deemed this fund to have high returns and low expenses, meaning for you won’t pay a premium for strong performance.
The Bottom Line
Tillinghast and his team had put together a great fund that has already been invested by small, yet recognizable companies such as Best Buy, MetLife, and UnitedHealth.
Praised by Morningstar and other stock experts, the FLKSX fund is considered to be profitable in short and long-term endeavors.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.