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Is ProFunds Technology UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, ProFunds Technology UltraSector Investor (TEPIX - Free Report) could be a potential option. TEPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Technology UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $95.38 million, according to the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 44.95%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 55.36%, which places it in the top third during this time-frame.
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. The standard deviation of TEPIX over the past three years is 32.13% compared to the category average of 26.77%. The fund's standard deviation over the past 5 years is 28.12% compared to the category average of 22.42%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.65, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. TEPIX's 5-year performance has produced a positive alpha of 13.82, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TEPIX is a no load fund. It has an expense ratio of 1.55% compared to the category average of 1.35%. From a cost perspective, TEPIX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $15,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, ProFunds Technology UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Technology UltraSector Investor ( TEPIX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into TEPIX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is ProFunds Technology UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, ProFunds Technology UltraSector Investor (TEPIX - Free Report) could be a potential option. TEPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Technology UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $95.38 million, according to the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 44.95%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 55.36%, which places it in the top third during this time-frame.
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. The standard deviation of TEPIX over the past three years is 32.13% compared to the category average of 26.77%. The fund's standard deviation over the past 5 years is 28.12% compared to the category average of 22.42%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.65, the fund is likely to be more volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. TEPIX's 5-year performance has produced a positive alpha of 13.82, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TEPIX is a no load fund. It has an expense ratio of 1.55% compared to the category average of 1.35%. From a cost perspective, TEPIX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $15,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, ProFunds Technology UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Technology UltraSector Investor ( TEPIX ) looks like a good potential choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into TEPIX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.