On the lookout for a Sector – Tech fund? Starting with Putnam Global Technology Y (PGTYX) should not be a possibility at this time. PGTYX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
We note that PGTYX is a Sector – Tech option, and this area is loaded with many options. Found in a wide number of industries such as semiconductors, software, internet, and networking, tech companies are everywhere. Thus, Sector – Tech mutual funds that invest in technology let investors own a stake in a notoriously volatile sector, but with a much more diversified approach.
PGTYX is a part of the Putnam Funds family of funds, a company based out of Canton, MA. Since Putnam Global Technology Y made its debut in January of 2009, PGTYX has garnered more than $550.00 million in assets. 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. This fund in particular has delivered a 5-year annualized total return of 11.28%, and it sits in the middle 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 23.48%, which places it in the middle third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
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 12.31%, the standard deviation of PGTYX over the past three years is 19.05%. The fund’s standard deviation over the past 5 years is 21.45% compared to the category average of 14.58%. 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 1.23, so it is likely going to be more volatile than 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 has generated a negative alpha over the past five years of -1.7, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.