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Is ProFunds Biotech Ultra Sector Investor (BIPIX) a Strong Mutual Fund Pick Right Now?
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Mutual Fund Equity Report fund seekers should consider taking a look at ProFunds Biotech Ultra Sector Investor (BIPIX - Free Report) . BIPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of BIPIX. ProFunds Biotech Ultra Sector Investor debuted in June of 2000. Since then, BIPIX has accumulated assets of about $119.79 million, according to the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.28%, and it sits in the middle 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 12.56%, 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. BIPIX's standard deviation over the past three years is 27.92% compared to the category average of 29.87%. Looking at the past 5 years, the fund's standard deviation is 28.99% compared to the category average of 26.41%. 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 1.14, 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. Over the past 5 years, the fund has a negative alpha of -3.82. This means that managers in this portfolio find it difficult to pick 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 largely on equities that are traded in the United States.
The mutual fund currently has 76.4% of its holdings in stocks, which have an average market capitalization of $116 billion. The fund has the heaviest exposure to the following market sectors:
Other
Health
Industrial Cyclical
Services
This fund's turnover is about 28%, so the fund managers are making fewer trades than its comparable peers.
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, BIPIX is a no load fund. It has an expense ratio of 1.49% compared to the category average of 1.29%. So, BIPIX is actually more expensive than its peers from a cost perspective.
While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, ProFunds Biotech Ultra Sector Investor ( BIPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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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Is ProFunds Biotech Ultra Sector Investor (BIPIX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at ProFunds Biotech Ultra Sector Investor (BIPIX - Free Report) . BIPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of BIPIX. ProFunds Biotech Ultra Sector Investor debuted in June of 2000. Since then, BIPIX has accumulated assets of about $119.79 million, according to the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 4.28%, and it sits in the middle 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 12.56%, 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. BIPIX's standard deviation over the past three years is 27.92% compared to the category average of 29.87%. Looking at the past 5 years, the fund's standard deviation is 28.99% compared to the category average of 26.41%. 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 1.14, 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. Over the past 5 years, the fund has a negative alpha of -3.82. This means that managers in this portfolio find it difficult to pick 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 largely on equities that are traded in the United States.
The mutual fund currently has 76.4% of its holdings in stocks, which have an average market capitalization of $116 billion. The fund has the heaviest exposure to the following market sectors:
- Other
- Health
- Industrial Cyclical
- Services
This fund's turnover is about 28%, so the fund managers are making fewer trades than its comparable peers.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, BIPIX is a no load fund. It has an expense ratio of 1.49% compared to the category average of 1.29%. So, BIPIX is actually more expensive than its peers from a cost perspective.
While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
Overall, ProFunds Biotech Ultra Sector Investor ( BIPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to www.zacks.com/funds/mutual-funds 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.