Is ProFunds Semicond UltraSector Investor (SMPIX) a Strong Mutual Fund Pick Right Now?
Investors in search of a Sector - Tech fund might want to consider looking at ProFunds Semicond UltraSector Investor (SMPIX). While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.ObjectiveWe note that SMPIX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversified approach.History of Fund/ManagerProFunds is responsible for SMPIX, and the company is based out of Columbus, OH. ProFunds Semicond UltraSector Investor made its debut in June of 2000, and since then, SMPIX has accumulated about $572.84 million in assets, per the most up-to-date date available. Michael Neches is the fund's current manager and has held that role since October of 2013.PerformanceInvestors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 56.74%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 112.54%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 22.39%, the standard deviation of SMPIX over the past three years is 48.5%. Looking at the past 5 years, the fund's standard deviation is 49.9% compared to the category average of 24.32%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 2.41, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 22.1, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, SMPIX is a no load fund. It has an expense ratio of 1.46% compared to the category average of 1.42%. Looking at the fund from a cost perspective, SMPIX is actually more expensive than its peers.While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineFor additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (SMPIX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks