The top four holdings of this tech fund are Google Inc. (GOOG, 9.00% of assets), Amazon.com Inc (AMZN, 8.79%), Workday, Inc. (WDAY, 6.07%), and Priceline Group Inc (PCLN, 5.04%)
T. Rowe Price Global Technology fund (PRGTX)
from The Complete Investor
As long as you’re not completely risk-averse, T. Rowe Price Global Technology fund (PRGTX) offers a compelling way to invest in technology. Since the spring of 2005, the fund (as of the end of 2015’s second quarter) has ranked in the top two percentile among its peers. It’s in the top one percentile for the past three- and five-year periods and top 12 percentile for the past one-year period.
Some of the risks are those inherent in any sector fund, whose fortunes by definition are tied to one particular slice of the economy—with technology a particularly volatile area. In addition, the T. Rowe Price fund has made a significant bet on the technology arena’s media segment, which accounts for nearly 48% of the fund’s total assets. This could pay off handsomely as media-related companies benefit from the global spread of Internet access, but it’s still a lot of eggs in one basket.
Overall the fund is highly concentrated. At the latest count it had a total of just 45 holdings, with 10 of them accounting for more than half (55%) of total assets. These large bets do pose extra risks, but so far they are paying off.
Turnover is very high at 229%. This isn’t necessarily bad, as it means that nothing is taken for granted, but it could result in a significant tax bill if the fund is held in a taxable account.
We would just caution that, as with any sector fund, you shouldn’t go overboard but should keep it a supporting player in your overall portfolio. T. Rowe Price Global Technology fund is an excellent way to invest in technology.
Stephen Leeb, PhD. and Genia Turanova, The Complete Investor, www.completeinvestor.com, 866-833-2070, August 2015