Investors seeking long-term aggressive holdings need not look beyond mutual funds betting on the technology sector. Even though such funds experience relatively higher levels of volatility, they tend to outperform other categories when markets as a whole are seeing an uptrend. Recent results from tech firms have also shown that the sector is gearing up to enter a new era of success and prosperity. Further, fund prices are based on stronger fundamentals compared to their initial boom period, substantially reducing the risk involved.
Below we will share with you 5 top rated technology mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.
Wells Fargo Advantage Specialized Technology A (WFSTX - MF report) invests the majority of its assets in technology companies. It may utilize at most half of its assets to purchase foreign common stocks and ADRs. A maximum of 25% of its assets can be invested in any single country, Japan being the only exception. The technology mutual fund has a ten year annualized return of 7.38%.
The fund manager is Huachen Chen and he has managed this technology mutual fund since 2004.
ProFunds Internet UltraSector (INPSX - MF report) seeks to return investment results which are 150% of the daily performance of the Dow Jones Internet Composite index. A large share of the funds assets are utilized to purchase securities which are part of the index or have identical features. The technology mutual fund has a ten year annualized return of 15.23%.
As of January 2013, this technology mutual fund held 46 issues, with 5.81% of its total assets invested in Google, Inc. Class A.
Firsthand Technology Opportunities (TEFQX - MF report) invests a large share of its assets in companies which utilize a high degree of cutting edge engineering or scientific knowledge in its operations. The fund invests in companies regardless of their size. The technology mutual fund has a ten year annualized return of 11.02%.
The technology fund has a minimum initial investment of $2,000 and an expense ratio of 1.85% compared to a category average of 1.57%.
Vanguard Information Technology Index (VITAX - MF report) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index by utilizing an indexing -investment approach. The fund invests almost all its assets in equity securities which are included in the index. The technology mutual fund has a five year annualized return of 6.89%.
The fund manager is Michael Perre and he has managed this technology mutual fund since 2004.
Kinetics Internet No Load (KTCAX - MF report) primarily invests in domestic and foreign companies whose primary business operations concern the Internet and Internet-related activities. The fund purchases common stocks, convertible securities, warrants and other equity securities. The technology mutual fund has a ten year annualized return of 6.17%.
The technology fund has a minimum initial investment of $1,000 and an expense ratio of 1.01% compared to a category average of 1.57%.
To view the Zacks Rank and past performance of all technology mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank.