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Mutual Fund Commentary

If any single business segment clearly represents the future, it is technology. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector by carefully selecting securities to create widely diversified portfolios.

Below we will share with you the 5 best performing technology mutual funds year to date. View the Zacks Rank and past performance of all technology mutual funds.

Mutual Fund Zacks Rank Total Return YTD
ProFunds Technology UltraSector #1 Strong Buy 5.9%
T. Rowe Price Global Technology #1 Strong Buy 5.3%
Buffalo Science & Technology #1 Strong Buy 4.9%
Fidelity Select Technology #1 Strong Buy 4.3%
T. Rowe Price Science & Technology #1 Strong Buy 4.0%

ProFunds Technology UltraSector (TEPIX) invests the majority of its assets in equity securities and derivatives that have daily return characteristics similar to the Dow Jones U.S. Technology Index. Assets not invested in such instruments are utilized to invest in money market instruments. This technology mutual fund returned 39.85% in the last one year period.

The fund manager is Michael S. Neches and he has managed this technology mutual fund since 2009.

T. Rowe Price Global Technology (PRGTX) seeks capital growth over the long term. The fund invests a large portion of its assets in commons stocks of firms which aim to generate a significant portion of their revenues from technology development or advancement. At least 30% of its assets are utilized to purchase foreign securities. This technology mutual fund has a three year annualized return of 14.9%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.22% compared to a category average of 1.74%.

Buffalo Science & Technology (BUFTX) primarily invests in common stocks of domestic companies whose securities may gain from advances in science and technology. This technology mutual fund returned 32.95% in the last one year period and has a five year annualized return of 6.95%.

As of September 2010, this technology mutual fund held 61 issues, with 4.86% of its total assets invested in Fidelity Instl MM Fds Government I.

Fidelity Select Technology (FSPTX) seeks capital appreciation over the long term. The fund invests primarily in companies that develop or offer products, processes, or services that benefit significantly from technological advances and improvements. This technology mutual fund returned 45.03% in the last one year period.

The fund manager is Yun-Min Chai and he has managed this technology mutual fund since 2007.

T. Rowe Price Science & Technology (PRSCX) invests at least 80% of its assets in companies poised to gain from advances in science and technology. It focuses on acquiring common stocks, both of new companies and established firms with impressive past performance. This technology mutual fund has a three year annualized return of 10.45%.

The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.00% compared to a category average of 1.74%.

View the Zacks Rank and past performance of all technology mutual funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank.

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