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 Internet UltraSector||#1 Strong Buy||40.17%|
|Rydex Internet||#3 Hold||27.20%|
|Waddell & Reed Science & Technology A||#4 Strong Sell||27.11%|
|Jacob Internet||#1 Strong Buy||26.15%|
|RS Technology A||#1 Strong Buy||25.29%|
ProFunds Internet UltraSector (INPSX) invests in securities and derivatives with the objective of generating return investment results which are 150% of the daily performance of the Dow Jones Internet Composite Index. This technology mutual fund is non-diversified and has a three year annualized return of 31.76%.
The technology mutual fund has a minimum initial investment of $15,000 and an expense ratio of 2.84% compared to a category average of 2.09%.
Rydex Internet (RYIAX) seeks capital growth. The fund invests heavily in domestically traded internet companies. The fund also invests in derivatives. It focuses on investing in small cap to mid-cap companies. Investments are also made in foreign internet companies and domestic government securities through ADRs. This technology mutual fund is non-diversified and has a three year annualized return of 18.20%.
The fund manager is Michael P. Byrum and he has managed this technology mutual fund since 2000.
Waddell & Reed Science & Technology A (UNSCX) invests the majority of its assets in technology companies. Investments can be made in companies which use technology to enhance their business operations. The fund invests in companies regardless of market cap and without any limit in foreign companies. The technology mutual fund has a three year annualized return of 22.54%.
As of June 2013, this technology mutual fund held 76 issues, with 7.71% of its total assets invested in Micron Technology, Inc.
Jacob Internet (JAMFX) seeks capital appreciation. The fund invests a large share of its assets in companies whose primary operations are related to the Internet and related areas. It focusses on purchasing common stock. A maximum of 35% of its assets may be invested in debt or fixed income instruments. The technology mutual fund has a three year annualized return of 18.66%.
The technology mutual fund has a minimum initial investment of $2,500 and an expense ratio of 2.87% compared to a category average of 1.53%.
RS Technology A (RSIFX) invests a large share of its assets in securities of issued by technology companies. The fund focusses on acquiring equity securities issued by domestic companies. However, it may also purchase foreign securities. The technology mutual fund has a three year annualized return of 16.21%.
The fund manager is Stephen J. Bishop and he has managed this technology mutual fund since 2001.
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.