Advertisement
UK markets open in 53 minutes
  • NIKKEI 225

    37,682.17
    -777.91 (-2.02%)
     
  • HANG SENG

    17,238.17
    +36.90 (+0.21%)
     
  • CRUDE OIL

    82.91
    +0.10 (+0.12%)
     
  • GOLD FUTURES

    2,331.90
    -6.50 (-0.28%)
     
  • DOW

    38,460.92
    -42.77 (-0.11%)
     
  • Bitcoin GBP

    51,485.33
    -1,966.22 (-3.68%)
     
  • CMC Crypto 200

    1,391.36
    +8.79 (+0.64%)
     
  • NASDAQ Composite

    15,712.75
    +16.11 (+0.10%)
     
  • UK FTSE All Share

    4,374.06
    -4.69 (-0.11%)
     

Is Janus Henderson Global Technology and Innovation T (JAGTX) a Strong Mutual Fund Pick Right Now?

Having trouble finding a Sector - Tech fund? Janus Henderson Global Technology and Innovation T (JAGTX) is a potential starting point. JAGTX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Sector - Tech funds is an area filled with options, and JAGTX 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 JAGTX. Janus Henderson Global Technology and Innovation T made its debut in December of 1998, and since then, JAGTX has accumulated about $1.47 billion in assets, per the most up-to-date date available. Denny Fish is the fund's current manager and has held that role since January of 2016.

ADVERTISEMENT

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. JAGTX has a 5-year annualized total return of 18.65% and is 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 6.04%, 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 15.89%, the standard deviation of JAGTX over the past three years is 24.5%. The standard deviation of the fund over the past 5 years is 22.95% compared to the category average of 16.84%. 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 1.12, which means it is hypothetically more volatile than 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. JAGTX has generated a positive alpha over the past five years of 3.29, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Holdings

Examining 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.

The mutual fund currently has 82.41% of its holdings in stocks, and these companies have an average market capitalization of $525.81 billion. The fund has the heaviest exposure to the following market sectors:

  • Technology

  • Other

Turnover is 43%, which means this 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, JAGTX is a no load fund. It has an expense ratio of 0.90% compared to the category average of 1%. So, JAGTX is actually cheaper than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Janus Henderson Global Technology and Innovation T ( JAGTX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

This could just be the start of your research on JAGTXin the Sector - Tech category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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 (JAGTX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research