Yahoo Finance Is BlackRock Science & Technology Opportunities A (BGSAX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report fund category, a potential starting could be BlackRock Science & Technology Opportunities A (BGSAX). BGSAX bears a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
BlackRock is based in New York, NY, and is the manager of BGSAX. BlackRock Science & Technology Opportunities A debuted in May of 2000. Since then, BGSAX has accumulated assets of about $1.29 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 10.93%, and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 4.61%, which places it in the middle 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. BGSAX's standard deviation over the past three years is 28.5% compared to the category average of 19.03%. Looking at the past 5 years, the fund's standard deviation is 25.24% compared to the category average of 16.78%. 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 1.15, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. BGSAX's 5-year performance has produced a positive alpha of 1.38, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
As of the last filing date, the mutual fund has 84.49% of its assets in stocks, which have an average market capitalization of $323.79 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Turnover is 29%, which means, on average, the fund makes fewer trades than the average comparable fund.
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, BGSAX is a load fund. It has an expense ratio of 1.17% compared to the category average of 1.30%. From a cost perspective, BGSAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, BlackRock Science & Technology Opportunities A ( BGSAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
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