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 the 5 best performing technology mutual funds year-to-date. To view the Zacks Rank and past performance of all technology funds, investors can click here to see the complete list of funds.
|Mutual Fund||Zacks Rank||Total Return YTD|
|Waddell & Reed Science and Technology A||#1 Strong Buy||17.1%|
|USAA Science $ Technology||#1 Strong Buy||14.1%|
|Highmark NYSE ArcaTech 100 A||#1 Strong Buy||12.7%|
|Invesco Technology Investor||#1 Strong Buy||7.1%|
|Black Oak Emerging Techonology||#1 Strong Buy||6.2%|
Waddell & Reed Science & Technology A (UNSCX) invests the majority of its assets in science and technology companies. The fund focuses on investing in mid and small-cap companies but may also invest in larger firms. The technology mutual fund has a five year annualized return of 5.57%.
The fund manager is Zachary H. Shafran and he has managed this technology mutual fund since 2001.
USAA Science & Technology (USSCX) seeks capital growth over the long term. The fund invests a large share of its assets in companies which expect to gain from scientific and technological advances. A maximum of half of its assets may be utilized to purchase foreign securities from either domestic or foreign markets. The technology mutual fund has a five year annualized return of 2.53%.
The technology mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.36% compared to a category average of 1.59%.
HighMark NYSE ArcaTech 100 Index A (PPTIX) invests in nearly all of the securities which make up the NYSE Arca Tech 100 Index in nearly the same proportion. A minimum of 90% of its assets are invested in securities included in the index. The technology mutual fund has a five year annualized return of 5.03%.
The fund manager is Donald J. Nesbitt and he has managed this technology mutual fund since 2009.
Invesco Technology Investor (FTCHX) seeks long-term capital appreciation. The fund invests the majority of its assets in companies which leverage technology in product development or operations. The fund purchases both domestic and foreign securities. The technology mutual fund is non-diversified and has a five year annualized return of 2.12%.
As of June 2012, this technology mutual fund held 112 issues, with 18.77% of its total assets invested in Apple, Inc.
Black Oak Emerging Technology (BOGSX) invests a large share of its assets in equity securities of firms that are expected to emerge as market leaders in the technology sector. The fund focuses on acquiring common stocks. The technology mutual fund has a five year annualized return of 2.1%.
The technology mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.35% compared to a category average of 1.59%.
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 at http://www.zacks.com/funds.
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