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Is ProFunds Technology UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Sector - Tech fund category, ProFunds Technology UltraSector Investor (TEPIX - Free Report) could be a potential option. TEPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TEPIX 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
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Technology UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $86.99 million, according to the most recently available information. 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. TEPIX has a 5-year annualized total return of 34.32% 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 35.23%, 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 TEPIX over the past three years is 33.35% compared to the category average of 24.9%. The fund's standard deviation over the past 5 years is 28.87% compared to the category average of 21.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.68, so it is likely going to be more volatile than 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 11.15, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
This fund is currently holding about 77.05% stock in stocks, which have an average market capitalization of $619.95 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
With turnover at about 177%, this fund is making more trades in a given year than the average of 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, TEPIX is a no load fund. It has an expense ratio of 1.65% compared to the category average of 1.38%. Looking at the fund from a cost perspective, TEPIX is actually more expensive than its peers.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, ProFunds Technology UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Technology UltraSector Investor ( TEPIX ) 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 TEPIX to its peers 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 Technology UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Sector - Tech fund category, ProFunds Technology UltraSector Investor (TEPIX - Free Report) could be a potential option. TEPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
TEPIX 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
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Technology UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $86.99 million, according to the most recently available information. 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. TEPIX has a 5-year annualized total return of 34.32% 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 35.23%, 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 TEPIX over the past three years is 33.35% compared to the category average of 24.9%. The fund's standard deviation over the past 5 years is 28.87% compared to the category average of 21.91%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.68, so it is likely going to be more volatile than 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 11.15, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
This fund is currently holding about 77.05% stock in stocks, which have an average market capitalization of $619.95 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Other
With turnover at about 177%, this fund is making more trades in a given year than the average of 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, TEPIX is a no load fund. It has an expense ratio of 1.65% compared to the category average of 1.38%. Looking at the fund from a cost perspective, TEPIX is actually more expensive than its peers.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, ProFunds Technology UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Technology UltraSector Investor ( TEPIX ) 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 TEPIX to its peers 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.