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Is Putnam Global Technology Y (PGTYX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Sector - Tech fund? Starting with Putnam Global Technology Y (PGTYX - Free Report) is one possibility. PGTYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and PGTYX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
PGTYX is a part of the Putnam Funds family of funds, a company based out of Canton, MA. The Putnam Global Technology Y made its debut in December of 2008 and PGTYX has managed to accumulate roughly $247.7 million in assets, as of the most recently available information. The fund's current manager, Di Yao, has been in charge of the fund since December of 2012.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 21.56%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.34% The fund's 3-year annualized total return of 23.34% places it in the top third, a metric that will likely stand out if you prefer to look at shorter time frames.
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. PGTYX's standard deviation over the past three years is 14.57% compared to the category average of 9.77%. Over the past 5 years, the standard deviation of the fund is 12.78% compared to the category average of 13.69%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Investors should note that the fund has a 5-year beta of 1.02, so it is likely going to be as volatile as the market at large. 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. The fund has produced a positive alpha over the past 5 years of 5.63, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For 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, PGTYX is a no load fund. It has an expense ratio of 1.03% compared to the category average of 1.41%. From a cost perspective, PGTYX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Putnam Global Technology Y PGTYX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Putnam Global Technology Y PGTYX looks like a good potential choice for investors right now.
Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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 Putnam Global Technology Y (PGTYX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Tech fund? Starting with Putnam Global Technology Y (PGTYX - Free Report) is one possibility. PGTYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and PGTYX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
PGTYX is a part of the Putnam Funds family of funds, a company based out of Canton, MA. The Putnam Global Technology Y made its debut in December of 2008 and PGTYX has managed to accumulate roughly $247.7 million in assets, as of the most recently available information. The fund's current manager, Di Yao, has been in charge of the fund since December of 2012.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 21.56%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 23.34% The fund's 3-year annualized total return of 23.34% places it in the top third, a metric that will likely stand out if you prefer to look at shorter time frames.
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. PGTYX's standard deviation over the past three years is 14.57% compared to the category average of 9.77%. Over the past 5 years, the standard deviation of the fund is 12.78% compared to the category average of 13.69%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.
Investors should note that the fund has a 5-year beta of 1.02, so it is likely going to be as volatile as the market at large. 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. The fund has produced a positive alpha over the past 5 years of 5.63, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For 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, PGTYX is a no load fund. It has an expense ratio of 1.03% compared to the category average of 1.41%. From a cost perspective, PGTYX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Putnam Global Technology Y PGTYX has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Putnam Global Technology Y PGTYX looks like a good potential choice for investors right now.
Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.