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Is ProFunds Internet UltraSector Investor (INPIX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Sector - Tech fund? Well, ProFunds Internet UltraSector Investor (INPIX - Free Report) would not be a good potential starting point right now. INPIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), 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 INPIX 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
ProFunds is based in Columbus, OH, and is the manager of INPIX. Since ProFunds Internet UltraSector Investor made its debut in June of 2000, INPIX has garnered more than $275.91 million in assets. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Of course, investors look for strong performance in funds. INPIX has a 5-year annualized total return of 22.98% and is 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 37.04%, 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. INPIX's standard deviation over the past three years is 24.47% compared to the category average of 12.68%. Over the past 5 years, the standard deviation of the fund is 26.72% compared to the category average of 12.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. INPIX lost 69.55% in the most recent bear market and underperformed its peer group by 16.24%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.85, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 4.64, 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, INPIX is a no load fund. It has an expense ratio of 1.42% compared to the category average of 1.31%. So, INPIX is actually more expensive than its peers from a cost perspective.
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 Internet UltraSector Investor ( INPIX ) has a low Zacks Mutual Fund rank, strong performance, worse downside risk, and higher fees compared to its peers.
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 want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is ProFunds Internet UltraSector Investor (INPIX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Sector - Tech fund? Well, ProFunds Internet UltraSector Investor (INPIX - Free Report) would not be a good potential starting point right now. INPIX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), 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 INPIX 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
ProFunds is based in Columbus, OH, and is the manager of INPIX. Since ProFunds Internet UltraSector Investor made its debut in June of 2000, INPIX has garnered more than $275.91 million in assets. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Of course, investors look for strong performance in funds. INPIX has a 5-year annualized total return of 22.98% and is 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 37.04%, 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. INPIX's standard deviation over the past three years is 24.47% compared to the category average of 12.68%. Over the past 5 years, the standard deviation of the fund is 26.72% compared to the category average of 12.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. INPIX lost 69.55% in the most recent bear market and underperformed its peer group by 16.24%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.85, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 4.64, 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, INPIX is a no load fund. It has an expense ratio of 1.42% compared to the category average of 1.31%. So, INPIX is actually more expensive than its peers from a cost perspective.
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 Internet UltraSector Investor ( INPIX ) has a low Zacks Mutual Fund rank, strong performance, worse downside risk, and higher fees compared to its peers.
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 want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.