Why invest in the same fund to do science and technology? Perhaps the best reason to buy these funds is that you can reach dozens or even hundreds of technology stocks through one fund, and you don't have to spend time studying stocks. You can buy low-cost index funds, or concentrate your holdings in the top actively managed funds of many technology stocks. Index funds imitate the indexes they hold, while actively managed funds try to beat the market by mixing stocks and bonds.
Index funds usually charge no or very little. Active management funds often have considerable expenditures in terms of wages, research costs and other costs. If you decide to invest, you need to consider the cost. Over time, they will accumulate and get a large part of your return. You can understand the cost structure of the fund by reading its prospectus (usually found online). This industry may fluctuate, because technology may become obsolete quickly and change products or services in a short life cycle.
How do we find the best technology industry fund? There are dozens of science and technology funds in the market. We used an online mutual fund research tool and some key criteria to narrow down our list to five. We do not include funds that charge fees (sales fees and/or commissions) and funds with an expense ratio higher than 1.00%. We also eliminated those actively managed funds that did not exceed the 5-year and 10-year return targets. Their performance must closely match their target benchmarks.
The following are the best science and technology funds in 202 1, in no particular order:
Fidelity Select Technology (FSPTX), if you are looking for actively managed technology funds, this may be the best choice. Its returns of one year, three years, five years and ten years make FSPTX ahead of the average fund in this field. The investment portfolio is mainly composed of large technology companies such as AAPL and MSFT. The reasonable cost is 0.7 1%.
Columbia Global Technology Growth (CMTFX), CMTFX is an actively managed fund that invests in global technology stocks. The returns of 5 years and 10 years exceed the average level of science and technology, and the expense rate is 0.97%. The largest holdings include AAPL and MSFT.
Fidelity select semiconductor (FSELX). If you want to focus on semiconductor stocks, consider adding FSELX to your portfolio. Examples of FSELX holding companies include Intel Corporation (INTC) and Qualcomm Corporation (QCOM). The expense ratio of FSELX is 0.72%.