The technology sector continues to grow at a rapid pace even with 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.
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 Zacks Mutual Fund Screener; this tool enables the investor to filter out 60 different categories, and narrow down the scope of mutual fund options. For this writing we utilized 4 of the larger filters, Mutual Fund Rank = 1, Expense Ratio 65%, and % Technology > 65%. These filters produced 7 funds, and from that list we chose the top 4. We wanted to find the top ranked funds with low expense ratios that are heavily weighted in technology stocks.
Please note, that there will be references to load fees, and expense ratios; if you click on the hyperlinks you will be directed to a brief article explaining in detail what those fees and expenses are, and how they impact your mutual fund returns.
Fidelity Select Computers Portfolio (MUTF:FDCPX) was incepted in July 1985 and is managed by the Fidelity Group. The objective of this technology fund is to seek capital appreciation. The fund normally invests at least 80% of assets in common stocks of companies principally engaged in research, design, development, manufacture, or distribution of products, processes, or services that relate to currently available or experimental hardware technology within the computer industry. The fund offers dividends and capital gains in April and December.
Cost specifics: The minimum initial investment is $2,500, it has no load fees, but does have a 0.55% management fee, a 0.75% redemption fee, and a total expense ratio of 0.81.
Performance and Management: YTD +16.49%, 1 year 37.72%, 5 year +12.04%, and 10 year +9.42%. FDCPX is managed by Christopher Lin who earned his economics degree from Harvard with honors. He has managed this portfolio since 2013.
Top Holdings: As of the most recent filing the portfolio held positions in Apple (NASDAQ:AAPL), Samsung (OTC:SSNLF), HP Inc. (NYSE:HPQ), Western Digital (NYSE:WDC), and Facebook (NASDAQ:FB).
Columbia Global Technology Growth (MUTF:CMTFX) was incepted in November 2002 and is managed by Columbia Management Advisors, Inc. The fund seeks capital appreciation. Under normal market conditions, the manager invests at least 80% of the fund’s total assets in stocks of technology companies that may benefit from technological improvements, advancements or developments. The fund invests in companies of all sizes, and expects to invest a significant percentage of its assets in small and mid-cap companies. The fund may also invest, to a limited extent, in foreign securities, including American Depositary Receipts. Dividends and capital gains, if any, are distributed annually.
Cost specifics: There is a minimum $2,500 initial investment, with a 0.87% management fee, and a total expense ratio of 1.08. This fund does not have any load fees.
Performance and Management: YTD +20.95%, 1 year +37.03%, 5 year +22.10%, and 10 year +10.35%. CMTFX is managed by Rahul Narang who has won the Lipper Fund Award for the Best in three-year performance Science Technology fund category. He has managed this fund since 2012.
Top Holdings: As of the most recent filing the portfolio held some of the big tech names including Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Apple, Amazon (NASDAQ:AMZN), Facebook, Nvidia (NASDAQ:NVDA), and Applied Materials (NASDAQ:AMAT).
Fidelity Select Semiconductors Portfolio (MUTF:FSELX) was incepted in July 1985 and is managed by Fidelity Group. The objective of the fund is to seek capital appreciation. The fund normally invests at least 80% of assets in common stocks of companies principally engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards, and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. The fund offers dividends and capital gains twice a year in April and December.
Cost specifics: The minimum initial investment is $2,500, it has no load fees, yet it does have a 0.55% management fee, a 0.75% redemption fee, and a total expense ratio of 0.75.
Performance and Management: YTD +10.5%, 1 year +41.15%, 5 year 23.15%, and 10 year +10.61%. FSELX is managed by Steve S Barwikowski who has managed the portfolio since 2009.
Top Holdings: As of the most recent filing, the portfolio held Intel Corporation (NASDAQ:INTC), Qualcomm Inc. (NASDAQ:QCOM), Broadcom Limited (NASDAQ:AVGO), Analog Devices (NASDAQ:ADI), and Micron Technology (NASDAQ:MU).
Fidelity Select Technology (MUTF:FSPTX) was incepted on 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 the 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).
Read the original:
- Technology killing off corporate America: Average life span of companies under 20 years - CNBC - August 25th, 2017
- Automated technology isn't going anywhere and it's changing ... - USA TODAY - August 25th, 2017
- AMD Technology Falls Short... Really? - Seeking Alpha - August 25th, 2017
- Morgan Stanley: This next big technology trend could start the 'fourth industrial revolution' - CNBC - August 25th, 2017
- Mortgage technology provider Blend raised another $100 million led by Greylock - TechCrunch - August 25th, 2017
- Philips to build health technology center in Tennessee - ABC News - August 25th, 2017
- Melinda Gates: I spent my career in technology. I wasn't prepared for ... - Washington Post - August 25th, 2017
- Information technology can help build peace. This is how. - Washington Post - August 25th, 2017
- Blockchain Technology Is Set to Disrupt Every Industry--and Music Is Next - Inc.com - August 22nd, 2017
- Campus police using technology to solve and prevent crimes - The Rolla Daily News - August 22nd, 2017
- 3 ways blockchain technology will change how we game - VentureBeat - August 20th, 2017
- Kenyan Girls Use Technology to Combat Genital Cutting - Voice of America - August 20th, 2017
- Taking a stand on Charlottesville, technology companies seek balance with free speech - The Independent - August 20th, 2017
- Technology and the New Republic just never seemed to click - The Guardian - August 20th, 2017
- Arizona edges to front of states eyeing blockchain technology - Arizona Daily Star - August 18th, 2017
- How technology is about to transform the way we save cash forever - Telegraph.co.uk - August 18th, 2017
- Tester talks technology with local business leaders - The Bozeman Daily Chronicle - August 18th, 2017
- 5 Questions: Is your child addicted to technology? - Philly.com - August 18th, 2017
- Opinion: This technology shift opens up new possibilities for iPhones, Androids and virtual reality - MarketWatch - August 16th, 2017
- The glow of technology has a dark side - Houston Chronicle - August 16th, 2017
- How Technology is Now Empowering Educators - Inc.com - August 15th, 2017
- How Technology Might Get Out of Control - Bloomberg - August 15th, 2017
- Trump administration goes after China over intellectual property, advanced technology - Washington Post - August 15th, 2017
- Building technology in Oklahoma, shipping all over the world - NewsOK.com - August 15th, 2017
- OKC startup pioneers technology that prevents accidental IV disconnects for hospital patients - NewsOK.com - August 15th, 2017
- Modernizing Government Technology Act to get second path to passage in Senate NDAA - FederalNewsRadio.com - August 14th, 2017
- ASCAP Names Tristan Boutros Chief Technology Officer - Variety - August 14th, 2017
- This Technology Could Stop the World's Deadliest Animal - Mother Jones - August 14th, 2017
- Technology Speeds Up Timeline on Quarterly Close - Wall Street Journal (subscription) - August 14th, 2017
- Trump Administration to Begin Probe of Alleged Chinese Technology Theft - Wall Street Journal (subscription) - August 13th, 2017
- 'Blockchain technology will change the world': Fidelity Labs SVP - CNBC - August 13th, 2017
- Victoria Teo, Technology Field, Sustainability, and the Roman Goddess - The Good Men Project (blog) - August 13th, 2017
- Technology migrations are more painful, and cloud isn't making them any easier - ZDNet - August 13th, 2017
- The fictitious movie technology we wish was real - CNET - August 13th, 2017
- Synchronous ledger technology (aka blockchain): The companies to watch - ZDNet - August 11th, 2017
- Scientists create world's first mutant ants with gene editing technology - Fox News - August 11th, 2017
- AWS just proved why standards drive technology platforms - TechCrunch - August 10th, 2017
- These Technology Index Funds Are Crushing It in 2017 - Motley Fool - August 10th, 2017
- Despite Proven Technology, Attempts To Make Table Saws Safer Drag On - NPR - August 10th, 2017
- Mass market hopes for battery-free cell phone technology - Reuters - August 10th, 2017
- CB&I selling technology business, suspending dividend - Chron.com - August 10th, 2017
- Why SMBs Should Opt for Best-of-Breed Marketing Technology - eMarketer - August 9th, 2017
- Mazda says it has made a long-awaited breakthrough in engine technology - Ars Technica - August 9th, 2017
- Clyde Space to build cubesats for Audacy technology demonstration - SpaceNews - August 9th, 2017
- Elon Musk's Boring Company to use Tesla's technology for its tunnel project under LA - Electrek - August 9th, 2017
- DXC Technology posts $245m EBIT in first quarter since merger - ZDNet - August 9th, 2017
- 'Breakthrough' microchip technology helps heal wounds, nerves and organ damage - The Independent - August 9th, 2017
- Keeping up with technology - The Sun Daily - August 8th, 2017
- Google fires employee who wrote memo about women in technology jobs - The Boston Globe - August 8th, 2017
- Apple Needs Micron Technology - Seeking Alpha - August 8th, 2017
- SoftBank adding technology ambitions, with ARM, robotics - ABC News - August 8th, 2017
- Police looking for multiple suspects following Northwest Side shooting - WOAI - August 8th, 2017
- "Technology should look like something in your grandmother's room" says Oki Sato - Dezeen - August 8th, 2017
- Victim of 9/11 identified after 16 years using new DNA technology - The Independent - August 8th, 2017
- Newer traffic technology designed to cut back on wait time and accidents - KSFY - August 8th, 2017
- This insanely advanced technology could power a future colony on Mars. - SYFY WIRE (blog) - August 6th, 2017
- India team helps IBM create technology to battle hackers - The Hindu - August 6th, 2017
- School Crossings: 1:1 technology explained - Chippewa Herald - August 6th, 2017
- Students solve crimes, study sunlight at Northern Essex science and technology camp - Eagle-Tribune - August 6th, 2017
- As shootings soar, Chicago police use technology to predict crime - Reuters - August 6th, 2017
- Bringing Garden Fresh technology to others - Crain's Detroit Business - August 6th, 2017
- Google Is Developing Technology for Snapchat-Like Media Content - Wall Street Journal (subscription) - August 5th, 2017
- America 2.0: Why It's Time for a Technology Upgrade - Knowledge@Wharton - August 5th, 2017
- Vigliotti: Human Rights and Technology - Carroll County Times - August 4th, 2017
- The 19th Century Moral Panic Over Paper Technology - Slate Magazine - August 4th, 2017
- Technology Gets Under The Skin - NPR - August 4th, 2017
- Trump promotes technology to improve veterans' health care - ABC News - August 4th, 2017
- Technology tracks 'bee talk' to help improve honey bee health - Phys.Org - August 4th, 2017
- The Supreme Court is about to become more transparent, thanks to technology - Washington Post - August 4th, 2017
- Former DoD CIO Teri Takai to Lead Center for Digital Government - Government Technology - August 3rd, 2017
- As Apple surges to all-time high, analyst sees a 'very troubling sign' for technology stocks - CNBC - August 3rd, 2017
- USDA creating better quality of life, safer environment through technology transfer - FederalNewsRadio.com - August 2nd, 2017
- Asian Technology Stocks Just Hit 17-year Peaks - Fortune - August 2nd, 2017
- Pharmaceutical Brands Can Use Programmatic Technology, Too - eMarketer - August 2nd, 2017
- Teachers embracing technology in the classroom - KRIS Corpus Christi News - August 2nd, 2017
- A Better, Safer Battery Could Be Coming to a Laptop Near You - New York Times - August 2nd, 2017
- Tesla's Longtime Battery Technology Director Leaves Company - Bloomberg - August 1st, 2017
- Use of this visual technology is becoming popular for big events - Phys.Org - August 1st, 2017
- Egalet's Guardian Technology Begins Fight Against Opioid Abuse Epidemic - Seeking Alpha - August 1st, 2017
- Technology and morality - Times of India (blog) - August 1st, 2017