If you have been looking for Sector – Tech funds, a place to start could be Putnam Global Technology Y (PGTYX). PGTYX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
PGTYX 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
Putnam Funds is responsible for PGTYX, and the company is based out of Canton, MA. Putnam Global Technology Y made its debut in January of 2009, and since then, PGTYX has accumulated about $439.60 million in assets, per the most up-to-date date available. The fund is currently managed by Di Yao who has been in charge of the fund since December of 2012.
Of course, investors look for strong performance in funds. PGTYX has a 5-year annualized total return of 32.45% and it sits 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 31.71%, 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. The standard deviation of PGTYX over the past three years is 22.28% compared to the category average of 17.02%. The fund’s standard deviation over the past 5 years is 18.54% compared to the category average of 14.34%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.01, so it is likely going to be as volatile as 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. PGTYX’s 5-year performance has produced a positive alpha of 14.54, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PGTYX is a no load fund. It has an expense ratio of 0.85% compared to the category average of 1.36%. PGTYX is actually cheaper than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.
Overall, Putnam Global Technology Y ( PGTYX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Sector – Tech, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.