Any investors hoping to find a Sector - Tech fund could think about starting with T. Rowe Price Global Technology (PRGTX Quick QuotePRGTX - Free Report) . PRGTX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that PRGTX 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

PRGTX is a part of the T. Rowe Price family of funds, a company based out of Baltimore, MD. T. Rowe Price Global Technology made its debut in September of 2000, and since then, PRGTX has accumulated about $2.87 billion in assets, per the most up-to-date date available. Dominic Rizzo is the fund's current manager and has held that role since December of 2022.

Performance

Investors naturally seek funds with strong performance. PRGTX has a 5-year annualized total return of 13.01% 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 -8.14%, 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. The standard deviation of PRGTX over the past three years is 28.16% compared to the category average of 19.73%. The fund's standard deviation over the past 5 years is 26.76% compared to the category average of 20.14%. 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. 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 -1.82. 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 0.92% compared to the category average of 1.10%. From a cost perspective, PRGTX is actually cheaper than its peers.

While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $100.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively weak performance, worse downside risk, and lower fees, T. Rowe Price Global Technology ( PRGTX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.

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