Why are the Fidelity Select and Fidelity Equity
Ratings Different?
Why doesn't the Select System trade the highest
ranked Select Fund from the Equity Fund system
rankings?
The simple answer is that the systems use two
different ranking systems.
The Select system can trade after only 30 days, and
it also can rotate into cash if needed, so it looks
back a significantly shorter time period than the
Equity fund system.
The Equity fund system only trades every 90 days,
(this is done so it can use many more of the Fidelity
offerings, especially several of the international
fund offerings). In addition, since it has a 90
day holding period, we chose not to try to rotate
into cash. Because of this the system not only
looks back over a longer period of time to rank the
funds, but the volatility of the funds is weighted
more heavily.
The Select funds tend to be more volatile since
they are by design focussed offerings, so funds
that are at the top of the Select rankings will not
necessarily be at the top of the Equity fund
rankings.