If investors are looking at the Sector - Tech fund category, make sure to pass over Ivy Science & Technology Y (
WSTYX Quick Quote WSTYX - Free Report) . WSTYX has 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 WSTYX 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
Ivy Funds is based in Boca Raton, FL, and is the manager of WSTYX. Ivy Science & Technology Y made its debut in June of 1998, and since then, WSTYX has accumulated about $426 million in assets, per the most up-to-date date available. The fund is currently managed by Zachary H. Shafran who has been in charge of the fund since February of 2001.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 24.24%, and is in the middle 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 23.26%, which places it in the middle 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. Compared to the category average of 16.05%, the standard deviation of WSTYX over the past three years is 21.53%. Over the past 5 years, the standard deviation of the fund is 18.34% compared to the category average of 13.33%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.1, the fund 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. WSTYX's 5-year performance has produced a positive alpha of 5.01, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Investigating 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.
Currently, this mutual fund is holding 78.34% stock in stocks, with an average market capitalization of $371.97 billion. Turnover is about 23%, so those in charge of the fund make fewer trades than comparable funds.
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, WSTYX is a no load fund. It has an expense ratio of 1.16% compared to the category average of 1.35%. From a cost perspective, WSTYX is actually cheaper than its peers.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Ivy Science & Technology Y ( WSTYX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, Ivy Science & Technology Y ( WSTYX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on WSTYXin the Sector - Tech category. Consider going to
www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.