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 Janus Henderson Global Technology and Innovation T (JAGTX). JAGTX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
The world of Sector - Tech funds is an area filled with options, and JAGTX 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.
JAGTX is a part of the Janus Fund family of funds, a company based out of Boston, MA. Since Janus Henderson Global Technology and Innovation T made its debut in December of 1998, JAGTX has garnered more than $1.93 billion in assets. The fund's current manager, Denny Fish, has been in charge of the fund since January of 2016.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 17.58%, and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 13.59%, which places it in the middle 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. Over the past three years, JAGTX's standard deviation comes in at 23.44%, compared to the category average of 15.95%. The fund's standard deviation over the past 5 years is 22.78% compared to the category average of 16.75%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.11, so investors should note that it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a positive alpha over the past 5 years of 1.67, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
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, JAGTX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 1%. From a cost perspective, JAGTX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $2,500; 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.
Overall, Janus Henderson Global Technology and Innovation T ( JAGTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Sector - Tech segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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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This article originally published on Zacks Investment Research (zacks.com).
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