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Is ProFunds Semicond UltraSector Investor (SMPIX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Sector - Tech category, but where should you start your research? Well, one fund that might be worth investigating is ProFunds Semicond UltraSector Investor (SMPIX - Free Report) . SMPIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
SMPIX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of SMPIX. The ProFunds Semicond UltraSector Investor made its debut in June of 2000 and SMPIX has managed to accumulate roughly $188.79 million in assets, as of the most recently available information. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Investors naturally seek funds with strong performance. SMPIX has a 5-year annualized total return of 42.67% and is 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 38.25%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. SMPIX's standard deviation over the past three years is 54.9% compared to the category average of 25.56%. Looking at the past 5 years, the fund's standard deviation is 48.67% compared to the category average of 26.96%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 2.11, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 22.19, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, SMPIX is a no load fund. It has an expense ratio of 1.54% compared to the category average of 1.43%. So, SMPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Want even more information about SMPIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is ProFunds Semicond UltraSector Investor (SMPIX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Sector - Tech category, but where should you start your research? Well, one fund that might be worth investigating is ProFunds Semicond UltraSector Investor (SMPIX - Free Report) . SMPIX has no Zacks Mutual Fund Rank, but we have been able to look into other metrics like performance, volatility, and cost.
Objective
SMPIX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
ProFunds is based in Columbus, OH, and is the manager of SMPIX. The ProFunds Semicond UltraSector Investor made its debut in June of 2000 and SMPIX has managed to accumulate roughly $188.79 million in assets, as of the most recently available information. The fund is currently managed by Michael Neches who has been in charge of the fund since October of 2013.
Performance
Investors naturally seek funds with strong performance. SMPIX has a 5-year annualized total return of 42.67% and is 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 38.25%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. SMPIX's standard deviation over the past three years is 54.9% compared to the category average of 25.56%. Looking at the past 5 years, the fund's standard deviation is 48.67% compared to the category average of 26.96%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 2.11, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 22.19, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, SMPIX is a no load fund. It has an expense ratio of 1.54% compared to the category average of 1.43%. So, SMPIX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $15,000 and that each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Want even more information about SMPIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.