FSELX is the Fidelity Select Semiconductors Portfolio, an actively managed mutual fund focused on semiconductor and semiconductor-equipment companies.
Unlike a broad-market fund, FSELX concentrates its investments in one industry. That can create strong upside when semiconductor stocks perform well, but it can also lead to much larger losses when the sector weakens.
For anyone researching FSELX, its latest return is only part of the story. Investors should also understand what the fund owns, how concentrated it is, how it compares with a semiconductor benchmark, what it costs, and how much risk it can add to a portfolio.
As of July 31, 2026, Fidelity reported a $59.19 NAV, $44.35 billion in portfolio net assets, a 0.60% expense ratio, and a 49.23% year-to-date return. Its June 30 portfolio contained 70 holdings, while the top 10 positions represented 77.09% of assets.
What is FSELX?
FSELX stands for Fidelity Select Semiconductors Portfolio. Fidelity describes it as a fund that seeks capital appreciation by investing in companies involved in semiconductors and related businesses.
The fund is actively managed. Its managers are not required to copy the holdings or weights of a specific semiconductor index.
Instead, they can increase or reduce individual positions based on their assessment of the industry and its companies.
Fidelity launched the fund on July 29, 1985. That gives FSELX a much longer operating history than many newer semiconductor and artificial-intelligence investment products.
Fidelity currently places the fund in Morningstar’s Technology category.
FSELX at a glance
| Metric | Latest reported information |
| Official name | Fidelity Select Semiconductors Portfolio |
| Ticker | FSELX |
| Fund structure | Actively managed mutual fund |
| Investment objective | Capital appreciation |
| Fund inception | July 29, 1985 |
| Morningstar category | Technology |
| NAV | $59.19 |
| NAV date | July 31, 2026 |
| Expense ratio | 0.60% |
| Minimum investment | $0 |
| Portfolio net assets | $44.35 billion |
| Turnover rate | 68% as of Aug. 31, 2025 |
| Holdings | 70 |
| Issuers | 46 |
The NAV, expense ratio, minimum investment, and portfolio assets come from Fidelity’s current fund information.
The 70 holdings and 46 issuers are based on the June 30, 2026 portfolio snapshot.
This distinction is important because FSELX is a specialized sector fund, not a broad-market investment.
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Why can FSELX move so much?
The main reason is concentration.
As of June 30, 2026, Fidelity reported 70 holdings across 46 issuers. The top 10 positions represented 77.09% of the total portfolio.
NVIDIA alone accounted for 20.75%, while Broadcom represented 12.62%.
That creates a very different risk profile from a total-market fund.
When semiconductor leaders rally because of strong demand for artificial-intelligence infrastructure, data centers, networking, or advanced computing, a concentrated portfolio can benefit significantly.
But the opposite can happen just as quickly.
A slowdown in semiconductor demand, weaker valuations, changing technology leadership, or disappointing results from a major holding can affect a large part of the fund at the same time.
This is why FSELX should not be evaluated simply by counting its holdings.
Seventy companies may sound diversified. However, those companies operate within a closely related industry, and the top 10 positions account for more than three-quarters of the portfolio.
The concentration is intentional
Concentration is not necessarily a flaw in an actively managed sector fund.
It is part of the investment strategy.
An investor choosing FSELX is accepting a stronger semiconductor focus than they would get from a diversified equity fund.
That can make sense as a deliberate satellite allocation.
It becomes more concerning when an investor already owns several technology funds or individual semiconductor stocks and does not realize how much exposure they have to the same companies.
The more useful question is therefore not:
“Is FSELX diversified?”
It is:
“How much semiconductor exposure does my entire portfolio already have?”
That portfolio-level question gives investors a much clearer picture of the risk.
What does FSELX own?
Fidelity’s latest detailed portfolio data shows that the fund is heavily concentrated in some of the industry’s largest and most important companies.
| Rank | Holding | Weight |
| 1 | NVIDIA | 20.75% |
| 2 | Broadcom | 12.62% |
| 3 | Marvell Technology | 8.53% |
| 4 | Astera Labs | 6.98% |
| 5 | ASML Holding | 5.90% |
| 6 | GlobalFoundries | 4.87% |
| 7 | NXP Semiconductors | 4.82% |
| 8 | Monolithic Power Systems | 4.72% |
| 9 | Lam Research | 3.96% |
| 10 | ON Semiconductor | 3.93% |
These weights are a June 30, 2026 snapshot. Because FSELX is actively managed, the holdings and their weights can change.
The portfolio also shows that FSELX is not limited to traditional chip manufacturers.
NVIDIA provides exposure to accelerated computing and AI infrastructure. Broadcom has major semiconductor and infrastructure exposure. Marvell is involved in data infrastructure and semiconductor solutions.
ASML and Lam Research provide exposure to semiconductor manufacturing equipment rather than chip design itself.
So FSELX covers several parts of the semiconductor ecosystem.
How concentrated is FSELX by industry?
The industry breakdown makes the fund’s focus even clearer.
As of June 30, 2026, Fidelity reported:
| Industry | Portfolio weight |
| Semiconductors | 81.13% |
| Semiconductor Materials & Equipment | 13.45% |
| Technology Hardware, Storage & Peripherals | 3.34% |
| Electronic Components | 1.18% |
| Electrical Components & Equipment | 0.29% |
| Other reported categories | 0.61% |
Fidelity also reported 89.57% domestic equities and 10.16% international equities, along with very small allocations to bonds and cash/net other assets.
This matters because describing FSELX simply as a technology fund can create the wrong impression.
A broad technology fund may own software companies, internet businesses, payment companies, IT services, and many other types of technology stocks.
FSELX is much narrower.
More than 94% of the portfolio was classified as either semiconductors or semiconductor materials and equipment at the June 30 reporting date.
In other words, the fund’s central investment thesis is the semiconductor industry.
FSELX performance: how strong has it been?
The recent performance numbers are impressive, but they need to be read with their measurement dates.
As of July 31, 2026, Fidelity reported these average annual total returns:
| Period | FSELX |
| 1 year | 81.30% |
| 3 years | 45.99% |
| 5 years | 35.64% |
| 10 years | 33.83% |
| Since inception | 16.45% |
For comparison, the S&P 500 returned 19.56%, 19.32%, 12.86%, and 15.08% over the corresponding 1-, 3-, 5-, and 10-year periods.
These figures make FSELX look exceptional.
However, they should not be treated as a forecast for future returns.
The calendar-year record provides an important reality check:
| Year | FSELX total return |
| 2022 | -35.18% |
| 2023 | 78.14% |
| 2024 | 43.51% |
| 2025 | 42.90% |
| 2026 through July 31 | 49.23% |
Fidelity’s historical data also shows returns of 59.19% in 2021, 44.01% in 2020, and 64.46% in 2019.
The lesson is more important than any single number.
A fund that can produce returns above 40% in several strong years can also lose more than 35% in a difficult year.
That is the trade-off investors need to understand before treating recent performance as evidence of permanently superior returns.
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Did FSELX outperform the semiconductor market?
This is one of the most useful questions to ask about an actively managed fund.
Comparing FSELX only with the S&P 500 is incomplete.
The S&P 500 is a broad U.S. equity benchmark. It is not a semiconductor-specific index.
Fidelity identifies the S&P 500 as the primary benchmark and the MSCI IMI Semiconductors & Semiconductor Equipment 25/50 Index as its secondary benchmark.
As of July 31, 2026, FSELX returned 81.30% over one year, compared with 83.33% for the secondary semiconductor benchmark.
Over three years, FSELX returned 45.99%, compared with 47.35% for the benchmark.
Over five years, FSELX returned 35.64%, compared with 35.31%.
This changes how the performance should be interpreted.
FSELX significantly outperformed the S&P 500 over those periods. However, its performance compared with the specialized semiconductor benchmark was much closer.
That suggests the exceptional returns were not simply the result of a manager discovering a sector that other investors had overlooked.
The semiconductor industry itself had a powerful run.
For an investor evaluating active management, the more meaningful question is:
“Has FSELX added value compared with an appropriate semiconductor benchmark after accounting for its costs and risks?”
The answer can vary by period.
Fidelity’s historical data shows FSELX outperforming the secondary benchmark in some calendar years and lagging it in others.
That is more informative than simply saying the fund “beat the market.”
What has driven semiconductor demand?
Semiconductors are essential components in modern computing and electronics.
They are used in data centers, networking systems, automobiles, smartphones, industrial equipment, and artificial-intelligence infrastructure.
One of the strongest recent demand drivers has been the expansion of AI infrastructure.
Fidelity’s June 2026 fund commentary noted that the semiconductor and semiconductor-equipment industry gained 72.70% during the second quarter of 2026, compared with 15.20% for the S&P 500.
The commentary attributed part of that strength to continued AI-infrastructure investment.
That helps explain the exceptional recent performance of FSELX.
However, the same characteristics that create growth opportunities can also create substantial downside risk.
Semiconductor companies operate in a highly competitive industry. Technology changes quickly, and demand can move through cycles.
Fidelity specifically highlights risks such as rapid technological obsolescence, competition, and changes in global demand.
For FSELX, these risks are amplified because the portfolio is intentionally concentrated in the industry.
What does FSELX cost?
The current gross and net expense ratios are both 0.60%, according to Fidelity’s April 29, 2026 information.
Fidelity also lists a $0 minimum investment.
As a simple illustration, a 0.60% expense ratio would correspond to about $60 in annual fund expenses on a $10,000 investment before considering investment gains or losses.
The actual expense is reflected through the fund’s operating expenses. Investors do not normally receive a separate $60 bill.
Compared with broad-market index funds, 0.60% is relatively expensive.
That is not surprising. FSELX is actively managed and highly specialized.
The more useful question is whether the investor has a reason to pay that fee for an actively managed semiconductor strategy instead of choosing a lower-cost passive semiconductor ETF or a broader index fund.
Does FSELX pay dividends?
FSELX is primarily a capital-appreciation fund, not an income fund.
Fidelity describes growth-oriented funds as generally emphasizing capital gains rather than income.
This distinction matters because some third-party websites may display a seemingly high yield based on fund distributions.
A mutual fund distribution can include capital gains, not just dividends or interest generated by the underlying holdings.
A large capital-gains distribution should therefore not automatically be interpreted as evidence that FSELX is a high-income investment.
Investors should review Fidelity’s distribution history and distinguish ordinary income distributions from capital-gain distributions.
There is also a tax consideration.
In a taxable account, a mutual fund can distribute taxable gains even if the investor did not sell their own shares.
The exact tax treatment depends on the type of distribution and the investor’s circumstances.
For someone seeking regular portfolio income, FSELX is generally very different from a dividend-focused fund or a bond fund.
FSELX vs. semiconductor ETFs
The most natural alternatives include semiconductor-focused ETFs such as SOXX and SMH.
The comparison is not simply active versus passive.
Investors should consider how each portfolio is constructed, how concentrated it is, what it costs, and how it trades.
| Feature | FSELX | Semiconductor ETFs |
| Structure | Mutual fund | ETF |
| Management | Active | Generally index-based |
| Trading | Once daily at NAV | Intraday |
| Focus | Semiconductors and related businesses | Semiconductor indexes |
| Portfolio decisions | Manager discretion | Index methodology |
| Expense ratio | 0.60% | Varies by fund |
| Main attraction | Active security selection | Lower-cost, exchange-traded exposure |
FSELX has one clear advantage for investors who want active management.
Its managers can change individual holdings and weights based on their assessment of the industry.
Passive ETFs offer a different advantage.
Their methodologies are generally transparent, and investors know that the portfolio follows defined index rules.
Neither structure automatically produces better returns.
Semiconductor ETFs can also become highly concentrated because the largest semiconductor companies have enormous market values.
The right comparison is therefore the actual holdings and methodology, not simply the label “ETF.”
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FSELX vs. a broad-market fund
A broad-market fund and FSELX serve very different purposes.
A broad-market fund spreads exposure across many industries and companies.
FSELX deliberately gives up some diversification to provide targeted semiconductor exposure.
| Portfolio characteristic | FSELX | Broad-market equity fund |
| Main purpose | Semiconductor exposure | Broad equity exposure |
| Industry diversification | Low | High |
| Company concentration | High | Generally much lower |
| Sector-specific risk | High | Lower |
| Potential portfolio role | Satellite allocation | Core allocation |
| Exposure to semiconductor cycle | Strong | Limited relative to FSELX |
This distinction is especially important for investors who already own an S&P 500 or technology index fund.
For example, an investor may already own NVIDIA, Broadcom, and other semiconductor companies through a broad U.S. equity fund.
Adding FSELX can increase exposure to those same companies much more than the investor initially realizes.
Who should consider FSELX?
FSELX may make sense for an investor who:
- Already has a diversified core portfolio.
- Specifically wants semiconductor-sector exposure.
- Understands that sector funds can be much more volatile than broad-market funds.
- Is comfortable with active management and a 0.60% expense ratio.
- Has a long enough investment horizon to tolerate major drawdowns.
- Wants targeted exposure rather than broad diversification.
It may be less appropriate for an investor who:
- Needs dependable investment income.
- Wants one fund to serve as a diversified core holding.
- Cannot tolerate large temporary losses.
- Already has significant semiconductor exposure.
- Wants broad exposure across multiple sectors.
- Is uncomfortable with active-management risk.
The key point is that FSELX does not need to be universally “good” or “bad.”
It needs to fit the role it plays in the portfolio.
What are the biggest FSELX risks?
The risks go beyond ordinary stock-market volatility.
Semiconductor concentration
More than 94% of the portfolio was classified as semiconductors or semiconductor materials and equipment as of June 30, 2026.
A sector downturn can therefore affect many holdings at the same time.
Individual-company concentration
The top 10 holdings represented 77.09% of the portfolio.
NVIDIA alone represented 20.75%.
A major move in one or two large holdings can therefore have a meaningful impact on the entire fund.
Technology disruption
Semiconductor technology evolves quickly.
Companies that dominate one generation of technology can face new competitors, architectures, or manufacturing developments.
Cyclical demand
Chip demand is linked to several industries.
Weakness in data-center spending, consumer electronics, automobiles, or industrial equipment can affect semiconductor companies.
Valuation risk
Strong growth expectations can become reflected in stock prices.
Even if a company’s underlying business continues to grow, its stock can fall when investors decide its valuation has become too high.
International exposure
Although most of the portfolio is U.S.-based, Fidelity reported 10.16% international-equity exposure as of June 30, 2026.
That introduces additional currency, political, and economic considerations.
Is FSELX a good core investment?
For investors looking for a single diversified equity fund, FSELX is generally a poor structural match.
Its mandate is intentionally narrow.
The fund had 70 holdings, more than three-quarters of its assets in the top 10 positions, and more than four-fifths of the portfolio classified as semiconductors as of the latest reporting periods.
That does not mean it cannot be used in a retirement portfolio.
It means investors should understand the role it is playing.
A diversified U.S. equity fund can provide the core exposure, while a semiconductor fund can potentially serve as a satellite position for an investor who deliberately wants additional sector exposure.
The appropriate allocation depends on the investor’s goals, risk tolerance, time horizon, and existing holdings.
A useful way to evaluate FSELX before buying
Instead of starting with the question “Will FSELX go up?”, a better approach is to evaluate how it fits into the overall portfolio.
1. Check your existing semiconductor exposure
Look at the holdings of your other funds.
You may already have significant positions in NVIDIA, Broadcom, and other companies held by FSELX.
2. Examine concentration
A fund with 77.09% of assets in its top 10 positions behaves very differently from a broadly diversified index fund.
3. Compare the right benchmark
Use a semiconductor-specific benchmark when evaluating whether active management has added value.
4. Look beyond the latest return
The 2022 loss of 35.18% is just as important for understanding risk as the subsequent years of exceptional gains.
5. Consider the fee
A 0.60% expense ratio is meaningful when lower-cost passive alternatives are available.
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6. Decide whether you need the sector exposure
If your portfolio already has substantial technology and semiconductor exposure, adding another concentrated position may increase risk more than expected.
This approach turns FSELX from a performance-chasing decision into a portfolio-construction decision.
Frequently Asked Questions
Is FSELX a stock or a mutual fund?
FSELX is a mutual fund, specifically the Fidelity Select Semiconductors Portfolio.
It owns a portfolio of semiconductor-related securities rather than representing shares of one company.
What does FSELX invest in?
FSELX focuses on semiconductor and semiconductor-equipment companies.
As of June 30, 2026, Fidelity classified 81.13% of the portfolio as semiconductors and another 13.45% as semiconductor materials and equipment.
What is FSELX’s expense ratio?
The current gross and net expense ratios are 0.60%, according to Fidelity’s April 29, 2026 fund information.
What is the largest FSELX holding?
As of June 30, 2026, NVIDIA was the largest holding at 20.75%. Broadcom was second at 12.62%.
How many holdings does FSELX have?
Fidelity reported 70 holdings across 46 issuers as of June 30, 2026.
Because the fund is actively managed, the number and composition of holdings can change.
Is FSELX actively managed?
Yes. FSELX is an actively managed Fidelity sector fund. Its portfolio managers can select and weight semiconductor-related securities instead of simply tracking a fixed index.
How has FSELX performed?
As of July 31, 2026, Fidelity reported average annual returns of:
81.30% for one year
45.99% for three years
35.64% for five years
33.83% for 10 years
These are historical returns and should not be treated as forecasts.
Does FSELX pay dividends?
FSELX is primarily designed for capital appreciation rather than dependable income.
Investors should distinguish ordinary income distributions from capital-gain distributions when evaluating its distribution history.
Is FSELX risky?
Yes. Its narrow semiconductor concentration, large individual positions, technological disruption risk, cyclical demand, and valuation risk can produce substantial volatility. Fidelity’s portfolio data shows how concentrated the fund is.
Is FSELX suitable as a core portfolio holding?
FSELX is structurally different from a diversified core equity fund. Its concentrated semiconductor exposure generally makes it more appropriate for investors who deliberately want sector exposure and understand the associated risks. Whether it belongs in a particular portfolio depends on the investor’s existing holdings and objectives.
Final verdict: Is FSELX worth considering?
FSELX is best understood as a concentrated semiconductor strategy rather than a conventional diversified mutual fund.
Its recent performance has been extraordinary.
But the more important numbers are the ones that explain why the fund behaves the way it does:
- 70 holdings
- 77.09% of assets in the top 10
- 81.13% semiconductor exposure
- 0.60% expense ratio
These figures are based on the latest Fidelity reporting periods stated above.
That concentration can be an advantage when semiconductor companies are performing strongly.
It can also become a significant disadvantage when the sector falls out of favor.
The strongest case for FSELX is therefore not simply that it has produced huge returns.
It is that an investor may want deliberate, actively managed exposure to the semiconductor industry and is willing to accept the concentration and volatility that come with it.
For someone looking for a diversified core equity fund, predictable income, or broad exposure across the economy, a different type of investment may be more appropriate.
The key is to evaluate FSELX as one component of a portfolio rather than judging it solely by its latest return.
Fund holdings, NAV, performance, expenses, and portfolio composition change over time. The figures above are dated to the reporting periods stated and should be checked against Fidelity’s latest fund documents before making an investment decision. Past performance does not guarantee future results.
