4 Best Technology Mutual Funds With Low Expense Ratios
Zacks Investment Research | Aug 07, 2017 05:04AM ET
The technology sector continues to grow at a rapid pace even with the all of the major markets at or near record levels. But the question arises, is there still room for growth for the remainder of 2017 and beyond? The answer is YES. Technology companies have posted solid earnings for the second quarter with the S&P 500 technology sector posting +16.5% year over year earnings growth. These positive earnings numbers combined with solid valuations give the sector strong upside growth opportunities. Moreover, low unemployment, an improving jobs picture, and international expansion act as further tailwinds for the sector.
This positive sentiment will help mutual funds that are overweighed in the technology sector produce outsized gains over the next several quarters. We have identified four such funds that are well positioned to take advantage of the tech surge.
Criteria
When looking for the best mutual funds, we need a method for narrowing down the universe of potential mutual fund options. This is easily accomplished by utilizing the FSPTX ) was incepted in July 14, 1981 and is managed by the Fidelity Group. The objective of the fund is to seek capital appreciation. Normally the fund invests at least 80% of assets in common stocks of companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. The fund offers dividends and capital gains twice a year in month of April and December.
Cost specifics: The minimum initial investment is $2,500, there are no load fees associated with the fund, but it does have a 0.55% management fee, and a total expense ratio of 0.76.
Performance and Management: YTD +27.83%, 1 year +44.45%, 5 year 18.42%, 10 year +11.42%. FSPTX is managed by Charlie Chai who is a CFA, with a BS degree in math and economics from Dartmouth College. Mr. Chai has been managing this fund since 2007.
Top Holdings: As of the most recent filing the portfolio consisted of companies like Apple, Facebook, Alphabet, Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT), and Autodesk (NASDAQ:ADSK).
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