If any single business segment clearly represents the future, it is technology. Many have viewed the sector with skepticism since the tech bubble burst more than a decade ago, but times have clearly changed for the better. Valuations are now based on stronger fundamentals and careful selection of investments has yielded good long term returns for many funds. Technology mutual funds greatly reduce the volatility inherent in this sector by carefully selecting securities to create widely diversified portfolios.
Below we will share with you the 5 best performing technology mutual funds year to date. To view the Zacks Rank and past performance of all technology funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| MFS Technology A | #1 Strong Buy | -5.3% |
| Fidelity Select Software & Computer | #1 Strong Buy | -7.3% |
| Vanguard Information Technology I | #1 Strong Buy | -7.7% |
| HighMark NYSE ArcaTecj 100 Index A | #1 Strong Buy | -8.0% |
| DWS Technology A | #1 Strong Buy | -10.2% |
MFS Technology A (MTCAX) seeks capital growth. The fund invests the majority of its assets in companies which produce or utilize products, processes and services which stand to gain substantially from technological developments. It purchases both domestic and foreign stocks, including emerging market equity securities. This technology mutual fund returned 5.08% in the last one year period.
The fund manager is Matthew Sabel and he has managed this technology mutual fund since 2011.
Fidelity Select Software & Computer Services (FSCSX) invests a large share of its assets in companies whose principal operations are related to software and information-based services. The fund is non-diversified and may invest in foreign securities. This technology mutual fund has a ten year annualized return of 10.56%.
As of August 2011, this technology mutual fund held 112 issues, with 18.10% of its total assets invested in Microsoft Corporation.
Vanguard Information Technology Index (VITAX) seeks to mimic the performance of the MSCI US Investable Market Information Technology 25/50 Index. The fund invests almost all its assets in equity securities which are included in the index. This technology mutual fund returned 2.67% in the last one year period.
The technology mutual fund has an expense ratio of 0.19% compared to a category average of 1.67%.
HighMark NYSE ArcaTech 100 Index A (PPTIX) invests almost all its assets in securities which make up the NYSE Arca Tech 100 Index. The fund seeks to replicate the total return fo the index. It may invest 5% of its assets in cash and cash equivalents. The technology mutual fund has a three year annualized return of 8.05%.
The fund manager is Nicholas B. Boullet and he has managed this technology mutual fund since 2002.
DWS Technology A (PRGTX) seeks capital appreciation. The fund invests the majority of its assets in technology companies. The fund focuses on acquiring common stocks of domestic companies from the technology sector, regardless of their size. Not more than 35% of its assets may be utilized to purchase foreign securities. The technology mutual fund has a five year annualized return of 6.67%.
The technology mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.13% compared to a category average of 1.67%.
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.
