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Is ProFunds Semicond UltraSector Investor (SMPIX) a Strong Mutual Fund Pick Right Now?

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If you have been looking for Mutual Fund Equity Report funds, a place to start could be ProFunds Semicond UltraSector Investor (SMPIX - Free Report) . SMPIX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

SMPIX is a part of the ProFunds family of funds, a company based out of Columbus, OH. ProFunds Semicond UltraSector Investor made its debut in June of 2000, and since then, SMPIX has accumulated about $97.03 million in assets, per the most up-to-date date available. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 28.77%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 28.1%, 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. SMPIX's standard deviation over the past three years is 41.5% compared to the category average of 25.79%. The standard deviation of the fund over the past 5 years is 37.43% compared to the category average of 23.04%. 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 1.78, 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. SMPIX has generated a positive alpha over the past five years of 8.48, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

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 primarily on equities that are traded in the United States.

As of the last filing date, the mutual fund has 82.76% of its assets in stocks, with an average market capitalization of $261.04 billion. The fund has the heaviest exposure to the following market sectors:

  1. Technology
  2. Other
This fund's turnover is about 54%, so the fund managers are making fewer trades than its comparable peers.

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, SMPIX is a no load fund. It has an expense ratio of 1.44% compared to the category average of 1.29%. So, SMPIX 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.

Bottom Line

Overall, ProFunds Semicond UltraSector Investor ( SMPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a good potential choice for investors right now.

Want even more information about SMPIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.


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