Top 5 Best Performing Technology Mutual Funds Year to Date

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Technology is clearly a long term growth prospect for investors willing to remain invested and should continue to outperform the market over time. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector through by carefully selecting securities to create widely diversified portfolios.

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

ProFunds Semiconductor UltraSector Service

#1 Strong Buy

16.61%

ProFunds Internet UltraSector Service

#1 Strong Buy

15.18%

Waddell & Reed Science & Technology A

#1 Strong Buy

13.19%

Red Oak Technology Select

#2 Buy

12.63%

USAA Science & Technology

#3 Hold

10.85%

 
ProFunds Semiconductor UltraSector Service (SMPSX) invests in securities and derivatives with an objective to generate return investment results which are 150% of the daily performance of the Dow Jones U.S. Semiconductors Index. The fund may also invest in money market instruments. The technology mutual fund is non-diversified and has a three year annualized return of 2.54%.

The fund manager is Hratch Najarian and he has managed this technology mutual fund since 2011.

ProFunds Internet UltraSector Service (INPSX) seeks to return investment results which are 150% of the daily performance of the Dow Jones Internet Composite index. The majority of its assets are utilized to purchase securities which are part of the index or have identical features. This technology mutual fund returned 21.62% in the last three year period.

As of January 2013, this technology mutual fund held 46 issues, with 5.81% of its total assets invested in Google, Inc. Class A.

Waddell & Reed Science & Technology A (UNSCX) invests the majority of its assets in science and technology companies. The fund focuses on investing in companies regardless of their sizes. It may invest a substantial part of its assets in foreign instruments. The technology mutual fund has a three year annualized return of 14.44%.

The technology mutual fund has a minimum initial investment of $500 and an expense ratio of 1.37% compared to a category average of 1.60%.

Red Oak Technology Select (ROGSX) seeks capital appreciation over the long term. The fund invests heavily in common stocks of firms that are heavily dependent on technology for their operations or product development activities. The technology mutual fund has a three year annualized return of 13.08%.

The fund manager is Mark W. Oelschlager and he has managed this technology mutual fund since 2006.

USAA Science & Technology (USSCX) invests the majority of its assets in companies that benefit from scientific and technological developments. A maximum of 50% of its assets may be utilized to purchase domestic as well as foreign securities. The technology mutual fund has a three year annualized return of 12.75%.

The technology mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.38% compared to a category average of 1.60%.

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.

Read the analyst report on SMPSX

Read the analyst report on INPSX

Read the analyst report on UNSCX

Read the analyst report on ROGSX

Read the analyst report on USSCX

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