April 13, 2024

reydetallarines

Technology and Age

Is Janus Henderson Global Technology D (JNGTX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Sector – Tech fund could think about starting with Janus Henderson Global Technology D (JNGTX). JNGTX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

The world of Sector – Tech funds is an area filled with options, and JNGTX 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.

History of Fund/Manager

Janus Fund is based in Boston, MA, and is the manager of JNGTX. The Janus Henderson Global Technology D made its debut in December of 1998 and JNGTX has managed to accumulate roughly $3.16 billion in assets, as of the most recently available information. Denny Fish is the fund’s current manager and has held that role since January of 2016.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 30.78%, and is in the top 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 30.39%, 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. Compared to the category average of 16.21%, the standard deviation of JNGTX over the past three years is 20.19%. Over the past 5 years, the standard deviation of the fund is 16.78% compared to the category average of 13.47%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 0.98, so it is likely going to be as volatile as 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. JNGTX’s 5-year performance has produced a positive alpha of 12.2, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

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, JNGTX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 1.35%. Looking at the fund from a cost perspective, JNGTX is actually cheaper than its peers.

While the minimum initial investment for the product is $2,500, investors should also note that each subsequent investment needs to be at least $50.

Bottom Line

Overall, Janus Henderson Global Technology D ( JNGTX ) 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.

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. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Get Your Free (JNGTX): Fund Analysis Report
 
To read this article on Zacks.com click here.