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Is ProFunds Semicond UltraSector Service Class (SMPSX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Sector - Tech category, but where should you start your research? Well, one fund that you should consider investigating is ProFunds Semicond UltraSector Service Class (SMPSX - Free Report) . SMPSX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SMPSX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of SMPSX. Since ProFunds Semicond UltraSector Service Class made its debut in June of 2000, SMPSX has garnered more than $1.58 million in assets. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. SMPSX has a 5-year annualized total return of 20.5% If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 31.26%.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In SMPSX's case, the fund lost 74.42% in the most recent bear market. This compares to a roughly 50.7% slump for the broad U.S. stock market, so SMPSX has underperformed the average in the last market downturn.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.98, which means it is hypothetically more volatile than the market at large. 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. SMPSX has generated a positive alpha over the past five years of 3.05, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, SMPSX is a no load fund and it has an expense ratio of 2.50%.
While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
With a rank of 'hold' we aren't getting a good signal one way or another on SMPSX. That is why it might be a good idea to consider other items, such as the fund's expense ratio of 2.5%, and how this compares to other potential options being considered for investment. If cheaper, it might make a decent choice, but a more expensive fund might be worth avoiding. Just make sure to pay attention to its rank in case it shifts in the near future.
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?
There are plenty of choices in the Sector - Tech category, but where should you start your research? Well, one fund that you should consider investigating is ProFunds Semicond UltraSector Service Class (SMPSX - Free Report) . SMPSX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SMPSX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of SMPSX. Since ProFunds Semicond UltraSector Service Class made its debut in June of 2000, SMPSX has garnered more than $1.58 million in assets. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. SMPSX has a 5-year annualized total return of 20.5% If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 31.26%.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In SMPSX's case, the fund lost 74.42% in the most recent bear market. This compares to a roughly 50.7% slump for the broad U.S. stock market, so SMPSX has underperformed the average in the last market downturn.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.98, which means it is hypothetically more volatile than the market at large. 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. SMPSX has generated a positive alpha over the past five years of 3.05, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, SMPSX is a no load fund and it has an expense ratio of 2.50%.
While the minimum initial investment for the product is $15,000, investors should also note that there is no minimum for each subsequent investment.
Bottom Line
With a rank of 'hold' we aren't getting a good signal one way or another on SMPSX. That is why it might be a good idea to consider other items, such as the fund's expense ratio of 2.5%, and how this compares to other potential options being considered for investment. If cheaper, it might make a decent choice, but a more expensive fund might be worth avoiding. Just make sure to pay attention to its rank in case it shifts in the near future.
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.