On August 1, Fidelity took direct aim at index fund competitors Vanguard, Blackrock’s iShares ...
T. Rowe Price Global: Time Tested in Tech
10/11/2016 10:00 am EST
Back in 2005 we added this technology fund to our roster; it has continued to deliver, performing in the top 4 percent of its category for the past one-year period and the top percentile for the past three- and five-year periods, asserts Alyssa Lappen in The Complete Investor.
But beyond those household names, it biggest holdings include some stocks probably less well known to the average American investor.
Its top position is NXP Semiconductors NV (NXPI), a longstanding Dutch provider of semiconductors to the automobile and computer (among other) industries, which accounts for upward of 8 percent of the fund’s assets.
The next biggest position, at more than 7.5 percent of total assets, is Workday Class A (WDAY), a software company big in enterprise cloud solutions for use in finance and human resources.
Some 60 percent of assets are in US technology securities, but the managers travel as far afield as the UK, Japan, China, Spain and elsewhere, including India, to find stocks.
Thus investors in the fund benefit from a genuinely global scope. Currently more than 8 percent of assets are in cash, enough dry powder to enable the managers to pounce on any new opportunities as they arise.
As of mid-August, total return for the year were 8 percent, compared to 7 percent for the S&P 500. The fund also has consistently maintained a low risk profile relative to its returns, according to Morningstar.
Particularly impressive, the fund has retained its 5-star Morningstar ratings over the past 10-, five-, and three-year periods in a category that has expanded to include 193 funds at latest count.
Yet another plus is the fund’s relatively low 0.91 percent expense ratio, which compares to the average of 1.46 percent for the category. T. Rowe Price Global Technology remains a buy recommendation.
By Alyssa Lappen, Editor in The Complete Investor
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