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Is T. Rowe Price Global Technology (PRGTX) 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 T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine 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
T. Rowe Price is based in Baltimore, MD, and is the manager of PRGTX. Since T. Rowe Price Global Technology made its debut in September of 2000, PRGTX has garnered more than $5.91 billion in assets. The fund's current manager, Joshua K. Spencer, has been in charge of the fund since June of 2012.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 26.92%, and it sits 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 23.2%, which places it in the top third during this time-frame.
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 16.77% compared to the category average of 12.12%. The fund's standard deviation over the past 5 years is 15.28% compared to the category average of 11.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. PRGTX lost 52.96% in the most recent bear market and outperformed its peer group by 0.47%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.21, so it is likely going to be more volatile than the market at large. 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. With a positive alpha of 10.29, managers in this portfolio are skilled in picking 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 mostly on equities that are traded in the United States.
Right now, 86.79% of this mutual fund's holdings are stocks, which have an average market capitalization of $139.31 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Other
Turnover is 204.3%, which means, on average, the fund makes more trades in a given year than the category average.
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, PRGTX is a no load fund. It has an expense ratio of 0.89% compared to the category average of 1.37%. Looking at the fund 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.
Bottom Line
Overall, T. Rowe Price Global Technology has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Global Technology looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Sector - Tech fund could think about starting with T. Rowe Price Global Technology (PRGTX - Free Report) . PRGTX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine 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
T. Rowe Price is based in Baltimore, MD, and is the manager of PRGTX. Since T. Rowe Price Global Technology made its debut in September of 2000, PRGTX has garnered more than $5.91 billion in assets. The fund's current manager, Joshua K. Spencer, has been in charge of the fund since June of 2012.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 26.92%, and it sits 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 23.2%, which places it in the top third during this time-frame.
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 16.77% compared to the category average of 12.12%. The fund's standard deviation over the past 5 years is 15.28% compared to the category average of 11.62%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. PRGTX lost 52.96% in the most recent bear market and outperformed its peer group by 0.47%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 1.21, so it is likely going to be more volatile than the market at large. 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. With a positive alpha of 10.29, managers in this portfolio are skilled in picking 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 mostly on equities that are traded in the United States.
Right now, 86.79% of this mutual fund's holdings are stocks, which have an average market capitalization of $139.31 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is 204.3%, which means, on average, the fund makes more trades in a given year than the category average.
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, PRGTX is a no load fund. It has an expense ratio of 0.89% compared to the category average of 1.37%. Looking at the fund 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.
Bottom Line
Overall, T. Rowe Price Global Technology has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, T. Rowe Price Global Technology looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Sector - Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.