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Is ProFunds Tech UltraSector Investor (TEPIX) a Strong Mutual Fund Pick Right Now?
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Any investors who are searching for Sector - Tech funds should take a look at ProFunds Tech UltraSector Investor (TEPIX - Free Report) . TEPIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
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 diversified approach.
History of Fund/Manager
ProFunds is responsible for TEPIX, and the company is based out of Columbus, OH. The ProFunds Tech UltraSector Investor made its debut in June of 2000 and TEPIX has managed to accumulate roughly $90.62 million in assets, as of the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Of course, investors look for strong performance in funds. TEPIX has a 5-year annualized total return of 18.94%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 46.3%, 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. The standard deviation of TEPIX over the past three years is 28.02% compared to the category average of 21.05%. The standard deviation of the fund over the past 5 years is 31.72% compared to the category average of 23.29%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.85, 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. The fund has produced a negative alpha over the past 5 years of -1.97, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 77.86% in stocks, with an average market capitalization of $803.03 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Other
With turnover at about 111%, this fund is making fewer trades than its comparable peers.
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, TEPIX is a no load fund and it has an expense ratio of 1.53%.
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
Want even more information about TEPIX? 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. 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?
Any investors who are searching for Sector - Tech funds should take a look at ProFunds Tech UltraSector Investor (TEPIX - Free Report) . TEPIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
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 diversified approach.
History of Fund/Manager
ProFunds is responsible for TEPIX, and the company is based out of Columbus, OH. The ProFunds Tech UltraSector Investor made its debut in June of 2000 and TEPIX has managed to accumulate roughly $90.62 million in assets, as of the most recently available information. The fund's current manager, Michael Neches, has been in charge of the fund since October of 2013.
Performance
Of course, investors look for strong performance in funds. TEPIX has a 5-year annualized total return of 18.94%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 46.3%, 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. The standard deviation of TEPIX over the past three years is 28.02% compared to the category average of 21.05%. The standard deviation of the fund over the past 5 years is 31.72% compared to the category average of 23.29%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.85, 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. The fund has produced a negative alpha over the past 5 years of -1.97, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 77.86% in stocks, with an average market capitalization of $803.03 billion. The fund has the heaviest exposure to the following market sectors:
With turnover at about 111%, this fund is making fewer trades than its comparable peers.
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, TEPIX is a no load fund and it has an expense ratio of 1.53%.
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
Want even more information about TEPIX? 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. 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.