On the lookout for a Sector - Tech fund? Starting with Red Oak Technology Select (ROGSX) should not be a possibility at this time. ROGSX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
ROGSX is part of the Sector - Tech category, which boasts an array of different possible selections. With a much more diversified approach, Sector - Tech mutual funds give investors a way to own a stake in a notoriously risky sector. Tech companies are in various industries like semiconductors, software, internet, and networking, among others.
History of Fund/Manager
Oak Associates is based in Akron, OH, and is the manager of ROGSX. Red Oak Technology Select made its debut in December of 1998, and since then, ROGSX has accumulated about $503.37 million in assets, per the most up-to-date date available. Mark W. Oelschlager is the fund's current manager and has held that role since April of 2006.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 21.16%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 27.68%, which places it in the top third during this time-frame.
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. ROGSX's standard deviation over the past three years is 12.5% compared to the category average of 15.34%. Looking at the past 5 years, the fund's standard deviation is 12.32% compared to the category average of 14.64%. This makes the fund less volatile than its peers over the past half-decade.
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. ROGSX lost 51.65% in the most recent bear market and underperformed comparable funds by 1.66%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Investors should note that the fund has a 5-year beta of 1.1, so it is likely going to be more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 4.74. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
This fund is currently holding about 86.4% stock in stocks, and these companies have an average market capitalization of $247.78 billion. This fund's turnover is about 8%, so the fund managers are making fewer trades than the average comparable fund.
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, ROGSX is a no load fund. It has an expense ratio of 0.94% compared to the category average of 1.35%. ROGSX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,000 and that each subsequent investment needs to be at $25.
Overall, Red Oak Technology Select ( ROGSX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Sector - Tech area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds . There, you can see more about the ranking process, and dive even deeper into ROGSX too for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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