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Is T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PRGTX. T. Rowe Price Global Technology debuted in September of 2000. Since then, PRGTX has accumulated assets of about $2.44 billion, according to the most recently available information. The fund's current manager, Alan Tu, has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. PRGTX has a 5-year annualized total return of 2.28% and is in the bottom 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 0.14%, which places it in the bottom 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. PRGTX's standard deviation over the past three years is 29.72% compared to the category average of 21.8%. The standard deviation of the fund over the past 5 years is 26.7% compared to the category average of 19.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.14, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PRGTX's 5-year performance has produced a negative alpha of -7.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRGTX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.30%. So, PRGTX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, T. Rowe Price Global Technology ( PRGTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report 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 T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Mutual Fund Equity Report fund category, make sure to pass over T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is based in Baltimore, MD, and is the manager of PRGTX. T. Rowe Price Global Technology debuted in September of 2000. Since then, PRGTX has accumulated assets of about $2.44 billion, according to the most recently available information. The fund's current manager, Alan Tu, has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. PRGTX has a 5-year annualized total return of 2.28% and is in the bottom 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 0.14%, which places it in the bottom 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. PRGTX's standard deviation over the past three years is 29.72% compared to the category average of 21.8%. The standard deviation of the fund over the past 5 years is 26.7% compared to the category average of 19.45%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.14, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. PRGTX's 5-year performance has produced a negative alpha of -7.03, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PRGTX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.30%. So, PRGTX is actually cheaper than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $100.
Bottom Line
Overall, T. Rowe Price Global Technology ( PRGTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Mutual Fund Equity Report 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.