Following a brief market pullback, we surveyed all Fidelity technology funds based on their performance during the selloff and their relative performance compared to the broad market indexes to identify the top three sector funds that we think are the most likely to continue to perform well in 2021.
Chart 1. The tech heavy Nasdaq index is on the verge of breaking out after a brief pullback.
Chart 2. The Fidelity Select Computers Fund (FDCPX) corrected to a lesser degree than the broad market and now poised to move higher.
Chart 3. The Fidelity Select Communications Equipment Fund (FSDCX) is outperforming the market. The accelerated switch to 5G technologies can continue to fuel the growth of this fund.
Chart 4. The Fidelity Select Semiconductors Fund (FSELX) invests in one of the hottest technology sub-sectors. The recent shortage of computer chips in the auto industry underlines the growth potential of semiconductors.
Fidelity Trends 