Whether you’re new to the stock market or you’re a seasoned investor, you’re likely looking for a good way to invest in science and technology. Thankfully, you have many options. Here are four that may be of interest.
Morningstar Style Box
Whether you are a new investor or a seasoned portfolio manager, Morningstar Style Box helps you construct a diversified investment portfolio. It provides an easy-to-understand visual representation of the characteristics of the securities you hold. This information helps you make informed decisions about how to invest in your portfolio.
The Style Box categorizes securities based on their market capitalization, growth factors, and value factors. It uses these categories to determine a fund’s style. It also allows you to determine a fund’s investment focus by identifying a fund’s underlying stocks.
The Morningstar Style Box is a proprietary data point that identifies the investment style of a fund. Each month, a fund’s underlying stock holdings are updated and the style box assignments are calculated. The asset-weighted average of the underlying stock style scores is used to assign the fund to a specific category.
Using a combination of fundamental and quantitative analysis, the fund is designed to achieve long-term capital appreciation. The portfolio is composed of stocks of companies across the science and technology sectors, including semiconductors, networking, and software. This is one of many funds in the Trowe Price line up. The fund was first launched in September 1987.
The fund is a good choice for investors interested in owning a piece of the pie in a highly cyclical sector. The fund has an average expense ratio of 0.59%. While this is lower than some rivals, it is not the most cost effective option. The fund’s fees may eat away at any gains you make.
The fund’s name, which was borrowed from a popular comic book, is a clue to what it specializes in: high-flying technology stocks. The fund’s most prominent holdings include Microsoft, Cisco, and Oracle, among others. The fund also has a hefty allocation to emerging markets. This enables the fund to invest in stocks from China, India, Brazil, Russia, and other parts of the world where technology is a commodity.
Investing in technology stocks can be a risky proposition, but it is possible to do so without incurring a fortune in fees. One example is the T. Rowe Price Science & Technology Fund, which is part of the firm’s investment portfolio.
The Science and Technology Fund invests in U.S. common stocks, as well as foreign stocks. The fund uses a “bottom-up” stock selection strategy, which identifies secular trends that are likely to benefit the company’s long-term performance. The fund will also consider companies that are developing new technologies. The fund may also make bets on issuers in emerging markets.
While the fund has been around for several years, it does not charge 12b-1 fees. The fee cap reflects this waiver. The Zacks Mutual Fund Rank is neutral. The Zacks Rank is a ranking of funds based on nine factors. The most important factor is the amount of assets allocated to the fund.
Among its peers in the science and technology sub-class, Trowe Price Science & Technology Fund, Inc. boasts an impressive $7.89 billion in assets, making it a relative of its peers in the mutual fund universe. The fund’s top notch performance is attributed to its seasoned portfolio managers who have the best of the best when it comes to making smart stock selections. This, coupled with the fund’s low fees, makes it an attractive option for many investors.
The fund’s most recent iteration has been around since September 1987, making it a fund that’s been around a while. The fund’s illustrious management team includes Kennard W. Allen, who is responsible for spotting and stewarding a number of high growth technology stocks in and out of the fund’s portfolio.
Risks associated with investing in T. Rowe Price Funds
Investing in T. Rowe Price Science and Technology Funds requires an investor to be aware of potential risks associated with these funds. These funds are investments in publicly-traded companies in the science and technology sectors. They are subject to various risk factors such as market and currency exchange rates, company valuations, and political economic uncertainty. These factors can impact the price, value, and income of securities. In addition, these stocks are subject to the risk of product liability lawsuits.
These funds may be subject to credit and liquidity risk, as well as geographic and issuer concentration risk. In addition, these funds may be affected by regulatory and/or exchange requirements. They also are subject to volatility and emerging market risk. These factors may lead to a decline in the net asset value per share of an affected fund.