We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Firsthand Technology Opportunities (TEFQX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
If you have been looking for Sector - Tech funds, it would not be wise to start your search with Firsthand Technology Opportunities (TEFQX - Free Report) . TEFQX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that TEFQX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
TEFQX is a part of the Firsthand family of funds, a company based out of San Jose, CA. Firsthand Technology Opportunities made its debut in September of 1999, and since then, TEFQX has accumulated about $72.60 million in assets, per the most up-to-date date available. The fund's current manager, Kevin M. Landis, has been in charge of the fund since September of 1999.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -11.83%, and it sits 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 -37.84%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. TEFQX's standard deviation over the past three years is 32.05% compared to the category average of 25.79%. The standard deviation of the fund over the past 5 years is 33.39% compared to the category average of 25.17%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.21, 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. The fund has produced a negative alpha over the past 5 years of -22.78, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TEFQX is a no load fund. It has an expense ratio of 1.85% compared to the category average of 1.24%. So, TEFQX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Firsthand Technology Opportunities ( TEFQX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Firsthand Technology Opportunities ( TEFQX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on TEFQXin 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. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Firsthand Technology Opportunities (TEFQX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Sector - Tech funds, it would not be wise to start your search with Firsthand Technology Opportunities (TEFQX - Free Report) . TEFQX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that TEFQX is a Sector - Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector - Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversifies approach.
History of Fund/Manager
TEFQX is a part of the Firsthand family of funds, a company based out of San Jose, CA. Firsthand Technology Opportunities made its debut in September of 1999, and since then, TEFQX has accumulated about $72.60 million in assets, per the most up-to-date date available. The fund's current manager, Kevin M. Landis, has been in charge of the fund since September of 1999.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of -11.83%, and it sits 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 -37.84%, which places it in the bottom third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. TEFQX's standard deviation over the past three years is 32.05% compared to the category average of 25.79%. The standard deviation of the fund over the past 5 years is 33.39% compared to the category average of 25.17%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.21, 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. The fund has produced a negative alpha over the past 5 years of -22.78, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, TEFQX is a no load fund. It has an expense ratio of 1.85% compared to the category average of 1.24%. So, TEFQX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Firsthand Technology Opportunities ( TEFQX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Firsthand Technology Opportunities ( TEFQX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on TEFQXin 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. 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.