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Is ProFunds Semicond UltraSector Service Class (SMPSX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Sector - Tech fund could think about starting with ProFunds Semicond UltraSector Service Class (SMPSX - Free Report) . SMPSX bears 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 SMPSX 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 diversified approach.
History of Fund/Manager
ProFunds is responsible for SMPSX, and the company is based out of Columbus, OH. ProFunds Semicond UltraSector Service Class made its debut in June of 2000, and since then, SMPSX has accumulated about $14.01 million in assets, per the most up-to-date date available. Michael Neches is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 47.83%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 77.76%, 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. SMPSX's standard deviation over the past three years is 53.12% compared to the category average of 25.26%. The standard deviation of the fund over the past 5 years is 49.59% compared to the category average of 24.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 2.32, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 17.7. This means that managers in this portfolio are skilled in picking 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, SMPSX is a no load fund. It has an expense ratio of 2.46% compared to the category average of 1.41%. So, SMPSX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Semicond UltraSector Service Class ( SMPSX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Want even more information about SMPSX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is ProFunds Semicond UltraSector Service Class (SMPSX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Sector - Tech fund could think about starting with ProFunds Semicond UltraSector Service Class (SMPSX - Free Report) . SMPSX bears 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 SMPSX 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 diversified approach.
History of Fund/Manager
ProFunds is responsible for SMPSX, and the company is based out of Columbus, OH. ProFunds Semicond UltraSector Service Class made its debut in June of 2000, and since then, SMPSX has accumulated about $14.01 million in assets, per the most up-to-date date available. Michael Neches is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 47.83%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 77.76%, 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. SMPSX's standard deviation over the past three years is 53.12% compared to the category average of 25.26%. The standard deviation of the fund over the past 5 years is 49.59% compared to the category average of 24.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 2.32, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 17.7. This means that managers in this portfolio are skilled in picking 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, SMPSX is a no load fund. It has an expense ratio of 2.46% compared to the category average of 1.41%. So, SMPSX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $15,000, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively strong performance, worse downside risk, and higher fees, ProFunds Semicond UltraSector Service Class ( SMPSX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.
Want even more information about SMPSX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.