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Is ProFunds Tech UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
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If you've been stuck searching for Sector - Tech funds, consider ProFunds Tech UltraSector Investor (TEPIX - Free Report) as a possibility. TEPIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that TEPIX 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
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Tech UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $60.23 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. TEPIX has a 5-year annualized total return of 22.81% and is in the top 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 31.94%, which places it in the top 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. TEPIX's standard deviation over the past three years is 32.98% compared to the category average of 25.26%. The standard deviation of the fund over the past 5 years is 33.16% compared to the category average of 24.62%. 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 1.82, which means it is hypothetically more volatile than the market at large. 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. TEPIX has generated a negative alpha over the past five years of -2.11, demonstrating that 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, TEPIX is a no load fund. It has an expense ratio of 1.50% compared to the category average of 1.41%. So, TEPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
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 strong performance, worse downside risk, and higher fees, ProFunds Tech UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
This could just be the start of your research on TEPIXin 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. 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 Tech UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
If you've been stuck searching for Sector - Tech funds, consider ProFunds Tech UltraSector Investor (TEPIX - Free Report) as a possibility. TEPIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that TEPIX 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
ProFunds is based in Columbus, OH, and is the manager of TEPIX. ProFunds Tech UltraSector Investor debuted in June of 2000. Since then, TEPIX has accumulated assets of about $60.23 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. TEPIX has a 5-year annualized total return of 22.81% and is in the top 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 31.94%, which places it in the top 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. TEPIX's standard deviation over the past three years is 32.98% compared to the category average of 25.26%. The standard deviation of the fund over the past 5 years is 33.16% compared to the category average of 24.62%. 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 1.82, which means it is hypothetically more volatile than the market at large. 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. TEPIX has generated a negative alpha over the past five years of -2.11, demonstrating that 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, TEPIX is a no load fund. It has an expense ratio of 1.50% compared to the category average of 1.41%. So, TEPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
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 strong performance, worse downside risk, and higher fees, ProFunds Tech UltraSector Investor ( TEPIX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
This could just be the start of your research on TEPIXin 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. 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.