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Is ProFunds UltraNASDAQ-100 Fund Investor (UOPIX) a Strong Mutual Fund Pick Right Now?
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Investors in search of an Index fund might want to consider looking at ProFunds UltraNASDAQ-100 Fund Investor (UOPIX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of UOPIX. The ProFunds UltraNASDAQ-100 Fund Investor made its debut in December of 1997 and UOPIX has managed to accumulate roughly $832.19 million in assets, as of the most recently available information. Michael Neches is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 25.14%, 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 6.12%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Compared to the category average of 25.56%, the standard deviation of UOPIX over the past three years is 45.02%. Looking at the past 5 years, the fund's standard deviation is 44.71% compared to the category average of 26.96%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. UOPIX has a 5-year beta of 2.25, which means it 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. The fund has produced a positive alpha over the past 5 years of 3.35, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 75.78% of its assets in stocks, and these companies have an average market capitalization of $531.12 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
With turnover at about 70%, this fund makes fewer trades than comparable funds.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, UOPIX is a no load fund. It has an expense ratio of 1.52% compared to the category average of 1.43%. So, UOPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Your research on the Index 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is ProFunds UltraNASDAQ-100 Fund Investor (UOPIX) a Strong Mutual Fund Pick Right Now?
Investors in search of an Index fund might want to consider looking at ProFunds UltraNASDAQ-100 Fund Investor (UOPIX - Free Report) . While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of UOPIX. The ProFunds UltraNASDAQ-100 Fund Investor made its debut in December of 1997 and UOPIX has managed to accumulate roughly $832.19 million in assets, as of the most recently available information. Michael Neches is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 25.14%, 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 6.12%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. Compared to the category average of 25.56%, the standard deviation of UOPIX over the past three years is 45.02%. Looking at the past 5 years, the fund's standard deviation is 44.71% compared to the category average of 26.96%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. UOPIX has a 5-year beta of 2.25, which means it 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. The fund has produced a positive alpha over the past 5 years of 3.35, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
As of the last filing date, the mutual fund has 75.78% of its assets in stocks, and these companies have an average market capitalization of $531.12 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Other
With turnover at about 70%, this fund makes fewer trades than comparable funds.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, UOPIX is a no load fund. It has an expense ratio of 1.52% compared to the category average of 1.43%. So, UOPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Your research on the Index 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. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.