Fidelity Select Semiconductors Portfolio (FSELX) has delivered a 10-year annualized return of 37.68% as of June 30, 2026, significantly outpacing the S&P 500’s 15.51% return over the same period and ranking among the top-performing mutual funds in the technology sector. The fund invests primarily in companies engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment, capturing gains from a decade of industry growth driven by artificial intelligence, cloud computing, and digital transformation.
Morningstar has awarded FSELX a 5-star rating out of 243 funds within its Technology category, reflecting its risk-adjusted performance. The fund scored “High” on Morningstar’s return metric, delivering returns in the top 10% when compared to other funds within its category over a three-year period. With a 0.6% expense ratio, the fund is also more cost-efficient than its category average of 1.17%, according to Fidelity research.
The fund’s strong recent performance underscores its positioning in a sector that has surged in 2026. During the first quarter of 2026, FSELX gained 7.19%, outperforming both the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index and the broad S&P 500 index. Year-to-date through mid-July 2026, the fund was up 51.93%, with a one-year return of 130.58% through June 30, 2026.
The fund’s top holdings reflect its concentrated exposure to semiconductor leaders. As of June 30, 2026, NVIDIA was its largest position at 20.75% of the portfolio, followed by Broadcom at 12.62% and Marvell Technology at 8.53%. The fund holds 70 securities across 46 issuers, with semiconductors representing 81.13% of its portfolio and 89.59% of assets in U.S. companies. The top 10 holdings account for 77.09% of the total portfolio, indicating a concentrated strategy that has benefited from the outsize gains of major semiconductor manufacturers.
Fidelity named FSELX one of its best mutual funds for 2026 in July, citing its long-term track record of positive returns. The fund has been managed since July 15, 2026 by Sonu Kalra, who also oversees Fidelity’s Blue Chip Growth Fund. With $54.4 billion in total net assets as of June 30, 2026, FSELX remains one of Fidelity’s largest sector-focused funds.
However, investors should note that the fund’s concentrated focus on a single industry makes it more volatile than diversified funds. Semiconductor stocks can be significantly affected by rapid technological obsolescence, intense global competition, and cyclical demand patterns. The fund’s strong decade-long performance reflects a period of sustained industry growth, but past performance is never a guarantee of future results.
Sources
- Fidelity Fund Research — 10-year return of 37.68%, Morningstar 5-star rating, expense ratio, holdings, and asset data as of June 30, 2026
- Fidelity Institutional — Q1 2026 performance data showing 7.19% gain and outperformance versus benchmarks
- Forbes — July 6, 2026 article naming FSELX among best Fidelity mutual funds for 2026
- Zacks Investment Research — Confirmation of fund’s Zacks Mutual Fund Rank and recent performance metrics
