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Is T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is responsible for PRGTX, and the company is based out of Baltimore, MD. Since T. Rowe Price Global Technology made its debut in September of 2000, PRGTX has garnered more than $1.80 billion in assets. Alan Tu is the fund's current manager and has held that role since May of 2019.
Performance
Of course, investors look for strong performance in funds. PRGTX has a 5-year annualized total return of 4.04% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.34%, 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. Over the past three years, PRGTX's standard deviation comes in at 29.45%, compared to the category average of 22.6%. The standard deviation of the fund over the past 5 years is 27.47% compared to the category average of 20.1%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.15, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -6.31. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PRGTX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.29%. So, PRGTX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $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.
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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
T. Rowe Price is responsible for PRGTX, and the company is based out of Baltimore, MD. Since T. Rowe Price Global Technology made its debut in September of 2000, PRGTX has garnered more than $1.80 billion in assets. Alan Tu is the fund's current manager and has held that role since May of 2019.
Performance
Of course, investors look for strong performance in funds. PRGTX has a 5-year annualized total return of 4.04% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.34%, 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. Over the past three years, PRGTX's standard deviation comes in at 29.45%, compared to the category average of 22.6%. The standard deviation of the fund over the past 5 years is 27.47% compared to the category average of 20.1%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.15, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -6.31. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, PRGTX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.29%. So, PRGTX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $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.
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. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.