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Is ProFunds UltraNASDAQ-100 Fund Investor (UOPIX) a Strong Mutual Fund Pick Right Now?
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On the lookout for an Index fund? Starting with ProFunds UltraNASDAQ-100 Fund Investor (UOPIX - Free Report) is one possibility. UOPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
UOPIX finds itself in the ProFunds family, based out of Columbus, OH. The ProFunds UltraNASDAQ-100 Fund Investor made its debut in December of 1997 and UOPIX has managed to accumulate roughly $605.40 million in assets, as of the most recently available information. 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 in particular has delivered a 5-year annualized total return of 24.88%, 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 26.25%, 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. Compared to the category average of 22.19%, the standard deviation of UOPIX over the past three years is 37.79%. The standard deviation of the fund over the past 5 years is 34.83% compared to the category average of 21.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. UOPIX lost 80.71% in the most recent bear market and underperformed its peer group by 38%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 2.2, so investors should note that 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. UOPIX has generated a positive alpha over the past five years of 8.35, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 97.4% of its holdings in stocks, and these companies have an average market capitalization of $413.37 billion. The fund has the heaviest exposure to the following market sectors:
Other
Technology
Turnover is 12%, which means this fund makes fewer trades than comparable funds.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, UOPIX is a no load fund. It has an expense ratio of 1.56% compared to the category average of 0.84%. Looking at the fund from a cost perspective, UOPIX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $15,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, ProFunds UltraNASDAQ-100 Fund Investor ( UOPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds UltraNASDAQ-100 Fund Investor ( UOPIX ) looks like a good potential choice for investors right now.
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is ProFunds UltraNASDAQ-100 Fund Investor (UOPIX) a Strong Mutual Fund Pick Right Now?
On the lookout for an Index fund? Starting with ProFunds UltraNASDAQ-100 Fund Investor (UOPIX - Free Report) is one possibility. UOPIX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
UOPIX finds itself in the ProFunds family, based out of Columbus, OH. The ProFunds UltraNASDAQ-100 Fund Investor made its debut in December of 1997 and UOPIX has managed to accumulate roughly $605.40 million in assets, as of the most recently available information. 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 in particular has delivered a 5-year annualized total return of 24.88%, 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 26.25%, 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. Compared to the category average of 22.19%, the standard deviation of UOPIX over the past three years is 37.79%. The standard deviation of the fund over the past 5 years is 34.83% compared to the category average of 21.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. UOPIX lost 80.71% in the most recent bear market and underperformed its peer group by 38%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Even still, the fund has a 5-year beta of 2.2, so investors should note that 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. UOPIX has generated a positive alpha over the past five years of 8.35, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Examining 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.
The mutual fund currently has 97.4% of its holdings in stocks, and these companies have an average market capitalization of $413.37 billion. The fund has the heaviest exposure to the following market sectors:
- Other
- Technology
Turnover is 12%, which means this fund makes fewer trades than comparable funds.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, UOPIX is a no load fund. It has an expense ratio of 1.56% compared to the category average of 0.84%. Looking at the fund from a cost perspective, UOPIX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $15,000; each subsequent investment has no minimum amount.
Bottom Line
Overall, ProFunds UltraNASDAQ-100 Fund Investor ( UOPIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, ProFunds UltraNASDAQ-100 Fund Investor ( UOPIX ) looks like a good potential choice for investors right now.
Your research on the Index segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.