Technology mutual funds are ideal for investors seeking long-term growth and impressive returns. Improving industry fundamentals and emerging technologies such as AI, ML, robotics, and data science are the key catalysts to the sector’s growth.
In addition, most funds investing in securities from the technology sector take a growth-oriented approach that focuses on companies with strong fundamentals and a relatively better investment prospect. Moreover, technology has come to have a broader meaning than just hardware and software. Social media and Internet companies are now part of the technology landscape.
Below we share with you three technology mutual funds, viz., ProFunds Semiconductor UltraSector Fund SMPSX, Fidelity Advisor Semiconductors Fund FELIX, and Fidelity Select Wireless Portfolio FWRLX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of technology funds.
ProFunds Semiconductor UltraSector Fund invests in a combination of financial instruments that according to its fund manager believes will produce daily returns consistent with the fund’s investment objective. SMPSX is a non-diversified fund.
ProFunds Semiconductor UltraSector Fund has three-year annualized returns of 28%. As of the end of April 2022, SMPSX held 33 issues with 17.04% of its assets invested in Nvidia Corp.
Fidelity Select Computers Portfolio invests most of its net assets in securities of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FELIX advisors choose to invest in stocks based on fundamental analysis factors such as each issuer’s financial condition, industry position, as well as market and economic conditions.
Fidelity Select Computers Portfolio fund has three-year annualized returns of 27.5%. FELIX has an expense ratio of 0.75% compared with the category average of 1.05%.
Fidelity Select Wireless Portfolio invests most of its net assets in common stocks of foreign and domestic companies principally engaged in activities relating to wireless communications services or products. FWRLX advisors choose to invest in stocks based on fundamental analysis factors such as each issuer’s financial condition, industry position, as well as market and economic conditions.
Fidelity Select Wireless Portfolio has three-year annualized returns of 13.2%. Matthew Drukker has been the fund manager of FWRLX since October 2016.
To view the Zacks Rank and the past performance of all Technology Mutual Funds, investors can click here to see the complete list of Technology funds.
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