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Is BlackRock Science & Technology Opportunities A (BGSAX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Sector - Tech fund? Starting with BlackRock Science & Technology Opportunities A (BGSAX - Free Report) is one possibility. BGSAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
BGSAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
BGSAX is a part of the BlackRock family of funds, a company based out of New York, NY. Since BlackRock Science & Technology Opportunities A made its debut in May of 2000, BGSAX has garnered more than $777.58 million in assets. The fund's current manager, Tony Kim, has been in charge of the fund since June of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 21.39%, 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 30.01%, 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 BGSAX over the past three years is 17.2% compared to the category average of 10.92%. The fund's standard deviation over the past 5 years is 16.41% compared to the category average of 11.16%. 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. In BGSAX's case, the fund lost 47.61% in the most recent bear market and outperformed its peer group by 6%. This could mean that the fund is a better choice than comparable funds during a bear market.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. BGSAX has a 5-year beta of 1.13, which means it is likely to be more volatile than the market average. 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. BGSAX's 5-year performance has produced a positive alpha of 7.87, 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, BGSAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.39%. BGSAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, BlackRock Science & Technology Opportunities A ( BGSAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, BlackRock Science & Technology Opportunities A ( BGSAX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Tech funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BGSAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is BlackRock Science & Technology Opportunities A (BGSAX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Tech fund? Starting with BlackRock Science & Technology Opportunities A (BGSAX - Free Report) is one possibility. BGSAX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
BGSAX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
BGSAX is a part of the BlackRock family of funds, a company based out of New York, NY. Since BlackRock Science & Technology Opportunities A made its debut in May of 2000, BGSAX has garnered more than $777.58 million in assets. The fund's current manager, Tony Kim, has been in charge of the fund since June of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 21.39%, 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 30.01%, 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 BGSAX over the past three years is 17.2% compared to the category average of 10.92%. The fund's standard deviation over the past 5 years is 16.41% compared to the category average of 11.16%. 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. In BGSAX's case, the fund lost 47.61% in the most recent bear market and outperformed its peer group by 6%. This could mean that the fund is a better choice than comparable funds during a bear market.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. BGSAX has a 5-year beta of 1.13, which means it is likely to be more volatile than the market average. 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. BGSAX's 5-year performance has produced a positive alpha of 7.87, 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, BGSAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.39%. BGSAX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, BlackRock Science & Technology Opportunities A ( BGSAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, BlackRock Science & Technology Opportunities A ( BGSAX ) looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Tech funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BGSAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.