Is T. Rowe Price Global Technology (PRGTX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Sector - Tech fund? Starting with T. Rowe Price Global Technology (PRGTX) is one possibility. PRGTX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Sector - Tech funds is an area filled with options, and PRGTX is one of them. Sector - Tech mutual funds allow investors to own a stake in a notoriously volatile sector with a much more diversified approach. Tech companies can be in any number of industries such as semiconductors, software, internet, networking just to name a few.
History of Fund/Manager
PRGTX finds itself in the T. Rowe Price family, based out of Baltimore, MD. T. Rowe Price Global Technology debuted in September of 2000. Since then, PRGTX has accumulated assets of about $7.23 billion, according to the most recently available information. The fund's current manager, Alan Tu, has been in charge of the fund since May of 2019.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 28.39%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 27.36%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, PRGTX's standard deviation comes in at 24.02%, compared to the category average of 19.25%. Over the past 5 years, the standard deviation of the fund is 20.58% compared to the category average of 16.08%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.08, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a positive alpha of 9.31, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PRGTX is a no load fund. It has an expense ratio of 0.86% compared to the category average of 1.35%. So, PRGTX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $100.
Bottom Line
Overall, T. Rowe Price Global Technology ( PRGTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Don't stop here for your research on Sector - Tech funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PRGTX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (PRGTX): Fund Analysis Report
To read this article on Zacks.com click here.
