We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Tech Mutual Funds to Gain From Fed's Jumbo Rate Cuts
Read MoreHide Full Article
This month, the Federal Reserve announced its sixth policy move for 2024. The Fed decided to lower the interest rate by 50 basis points to a range between 4.75-5% making it the first-rate reduction in four years.
Here's Why Lower Rates Are a Boon for Tech Stocks
The Fed’s dovish stance is expected to boost tech companies. Tech companies often benefit from lower interest rates as it helps to decrease their borrowing expenses and enables them to allocate resources toward expanding their business activities and investing in innovation and research projects without the constraints of hefty interest charges.
What Are the Benefits of Investing in Tech Mutual Funds?
Investing in technology-based mutual funds offers an opportunity to access a diversified portfolio of growing companies that are well-positioned to gain from the Federal Reserve's interest rate reductions. These funds primarily concentrate on businesses engaged in producing technology products and services like software development and other tech-related services. They make use of their performance histories and management strategies to take advantage of the growth opportunities within the technology sector.
Thus, we have chosen three tech mutual funds Fidelity Select Semiconductors Portfolio (FSELX - Free Report) , DWS Science and Technology Fund (KTCAX - Free Report) and Janus Henderson Glb Tech and Innovt (JNGTX - Free Report) , that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Select Semiconductors Portfolio seeks capital appreciation. FSELX invests most of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components.
Adam Benjamin has been the lead manager of FSELX since March 16, 2020. Most of the fund's holdings were in companies like NVIDIA Corp. (25%), NXP Semiconductors N.V. (6.9%) and ON Semiconductor Corp (6.7%) as of May 31, 2023.
FSELX's 3-year and 5-year returns are 26.1% and 36.3%, respectively. The annual expense ratio is 0.67% compared with the category average of 1.24%. FSELX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
DWS Science and Technology Fund invests most of its assets and borrowings, if any, in common stocks of science and technology companies. KTCAX advisors also invest in foreign securities.
Sebastian P. Werner has been the lead manager of KTCAX since Dec. 1, 2017. Most of the fund's holdings were in companies like Microsoft Corp. (9.5%), NVIDIA Corp. (9.2%) and Meta Platforms, Inc. (8.8%) as of April 30, 2023.
KTCAX's 3-year and 5-year returns are 8.8% and 20.7%, respectively. The annual expense ratio is 0.87% compared with the category average of 1.02%. KTCAX has a Zacks Mutual Fund Rank #1.
Janus Henderson Glb Tech and Innovt fund aims for long-term growth of capital and specializes in technology. JNGTX invests the majority of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology.
Denny Fish has been the lead manager of JNGTX since Jan. 12, 2016. Most of the fund’s holdings were in companies like Microsoft Corp. (10.7%), NVIDIA Corp. (10.4%) and Meta Platforms, Inc. (5.7%) as of March 31, 2024.
JNGTX’s 3-year and 5-year annualized returns are 6.2% and 19.7%, respectively. Its net expense ratio is 0.78% compared to the category average of 0.30%. JNGTX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Tech Mutual Funds to Gain From Fed's Jumbo Rate Cuts
This month, the Federal Reserve announced its sixth policy move for 2024. The Fed decided to lower the interest rate by 50 basis points to a range between 4.75-5% making it the first-rate reduction in four years.
Here's Why Lower Rates Are a Boon for Tech Stocks
The Fed’s dovish stance is expected to boost tech companies. Tech companies often benefit from lower interest rates as it helps to decrease their borrowing expenses and enables them to allocate resources toward expanding their business activities and investing in innovation and research projects without the constraints of hefty interest charges.
What Are the Benefits of Investing in Tech Mutual Funds?
Investing in technology-based mutual funds offers an opportunity to access a diversified portfolio of growing companies that are well-positioned to gain from the Federal Reserve's interest rate reductions. These funds primarily concentrate on businesses engaged in producing technology products and services like software development and other tech-related services. They make use of their performance histories and management strategies to take advantage of the growth opportunities within the technology sector.
Thus, we have chosen three tech mutual funds Fidelity Select Semiconductors Portfolio (FSELX - Free Report) , DWS Science and Technology Fund (KTCAX - Free Report) and Janus Henderson Glb Tech and Innovt (JNGTX - Free Report) , that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Select Semiconductors Portfolio seeks capital appreciation. FSELX invests most of its assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components.
Adam Benjamin has been the lead manager of FSELX since March 16, 2020. Most of the fund's holdings were in companies like NVIDIA Corp. (25%), NXP Semiconductors N.V. (6.9%) and ON Semiconductor Corp (6.7%) as of May 31, 2023.
FSELX's 3-year and 5-year returns are 26.1% and 36.3%, respectively. The annual expense ratio is 0.67% compared with the category average of 1.24%. FSELX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
DWS Science and Technology Fund invests most of its assets and borrowings, if any, in common stocks of science and technology companies. KTCAX advisors also invest in foreign securities.
Sebastian P. Werner has been the lead manager of KTCAX since Dec. 1, 2017. Most of the fund's holdings were in companies like Microsoft Corp. (9.5%), NVIDIA Corp. (9.2%) and Meta Platforms, Inc. (8.8%) as of April 30, 2023.
KTCAX's 3-year and 5-year returns are 8.8% and 20.7%, respectively. The annual expense ratio is 0.87% compared with the category average of 1.02%. KTCAX has a Zacks Mutual Fund Rank #1.
Janus Henderson Glb Tech and Innovt fund aims for long-term growth of capital and specializes in technology. JNGTX invests the majority of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology.
Denny Fish has been the lead manager of JNGTX since Jan. 12, 2016. Most of the fund’s holdings were in companies like Microsoft Corp. (10.7%), NVIDIA Corp. (10.4%) and Meta Platforms, Inc. (5.7%) as of March 31, 2024.
JNGTX’s 3-year and 5-year annualized returns are 6.2% and 19.7%, respectively. Its net expense ratio is 0.78% compared to the category average of 0.30%. JNGTX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>