Technology has increasingly become an indispensible part of our
daily lives and the future prospects of this sector only seem
brighter. However, the boom of tech funds in the late nineties and
their subsequent downfall during the decline that followed has
invoked a certain degree of skepticism even among those bullish on
this category. But for investors seeking aggressive growth over the
long term, investing in funds that focus on technology and
innovation could be a prudent option in times to come.
Below we will share with you 5 top rated technology mutual
funds. Each has earned a
Zacks #1
Rank
(Strong Buy) as we expect these mutual funds to outperform their
peers in the future. To view the Zacks Rank and past
performance of all technology funds, investors can
click here to see the complete list of funds
.
Fidelity Select Software and Computer Services
(
FSCSX
) seeks capital appreciation. The fund invests the majority of its
assets in companies whose principal operations are related to
software or information-based services. The fund may purchase
foreign securities and invest a heavily in a single issuer. The
technology mutual fund has a five year annualized return of
7.01%.
The technology mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.81% compared to a category average
of 1.60%.
USAA Science & Technology
(
USSCX
) invests a large share of its assets in companies which expect to
gain from scientific and technological advances. A maximum of half
of its assets may be utilized to purchase foreign securities from
either domestic or foreign markets. The technology mutual fund has
a five year annualized return of 1.27%.
As of Janaury 2012, this technology mutual fund held 146 issues,
with 8.20% of its total assets invested in Apple, Inc.
HighMark NYSE ArcaTech 100 Index A
(
PPTIX
) seeks capital appreciation. The fund invests in nearly all of the
securities which make up the NYSE Arca Tech 100 Index in nearly the
same proportion. A minimum of 90% of its assets are invested in
securities included in the index. The technology mutual fund has a
five year annualized return of 3.87%.
The fund manager is Donald J. Nesbitt and he has managed this
technology mutual fund since 2009.
Goldman Sachs Technology Tollkeeper A
(
GITAX
) invests the majority of its assets in equity securities of
Tollkeeper companies .These are companies that are positioned to
benefit from the proliferation of technology. A maximum of 25% of
its assets may be utilized to purchase foreign securities. The
technology mutual fund has a five year annualized return of
5.08%.
The technology mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.02% compared to a category average
of 1.60%.
Vanguard Information Technology Index
(
VITAX
) seeks to mimic the performance of the MSCI US Investable Market
Information Technology 25/50 Index by utilizing an indexing
-investment approach. The fund invests almost all its assets in
equity securities which are included in the index. The technology
mutual fund has a five year annualized return of 3.76%.
The fund manager is Michael Perre and he has managed this
technology mutual fund since 2004.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
http://www.zacks.com/funds
.
View All Zacks #1 Ranked Mutual Funds
(FSCSX): ETF Research Reports
(GITAX): ETF Research Reports
(PPTIX): ETF Research Reports
(USSCX): ETF Research Reports
(VITAX): ETF Research Reports
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