Within the technology sector, the electronics industry continues to experience growth as the technology that supports producing consumer staples such as smartphones, tablets, e-readers and computers constantly advances. The continuous development of semiconductors keeps competition strong within the industry, and electronics companies are among some of the strongest performers in the market over time. Investors interested in long-term growth through sector-specific investing can purchase shares of stocks or bonds of companies focused in the electronics or semiconductor industry.

As an alternative, mutual fund investments provide a diversified and efficient method to invest within the electronics and semiconductor sectors. The most popular electronics sector mutual funds by volume are Fidelity Select Electronics Portfolio, ProFunds Semiconductor UltraSector Investor, Fidelity Advisor Electronics Fund and T. Rowe Price Global Technology Fund.

Fidelity Select Electronics Portfolio

The Fidelity Select Electronics Portfolio is widely known for its high-performance, low-cost model of mutual fund investment. The fund's investment objective is capital appreciation, and it diversifies its $2.33 billion in investor assets across companies focused on designing, manufacturing and selling electronic components. Both foreign and domestic equipment vendors, component distributors, electronic instruments and systems vendors compile the fund. Fidelity Select Electronics Portfolio has a relatively low expense ratio of 0.79% compared to other electronics sector funds, and its one-, three- and five-year annualized returns are 27.8%, 18.6% and 16.4% as of April 2015.

ProFunds Semiconductor UltraSector Investor

The ProFunds Semiconductor UltraSector Investor Fund has a narrow focus on the semiconductor industry with an investment objective of capital appreciation that corresponds to the Dow Jones U.S. Semiconductors Index. Fund managers aim to outperform the benchmark index by 1.5 times through daily investment returns of semiconductor companies in the United States. The fund has an above-average expense ratio of 1.73% compared to similar sector funds, but its returns have been relatively consistent. The one-, three- and five-year annualized returns are 34.8%, 19.5% and 16.8% as of April 2015.

Fidelity Advisor Electronics Fund

Similar to Fidelity's Select Electronics Fund, the Fidelity Advisor Electronics Fund invests primarily in companies that design, manufacture and sell the components necessary to produce electronic devices. The investment objective of capital appreciation is sought through diversifying at least 80% of the fund's investor assets in foreign and domestic companies in the electronics sector. The fund has an expense ratio of 1.39%, lower than the average for comparable sector funds, but is considered higher risk. The fund's one-, three- and five-year annualized returns are 27.3%, 17.8% and 15.6% as of April 2015.

T. Rowe Price Global Technology Fund

The T. Rowe Price Global Technology Fund seeks long-term capital appreciation through investing in the common stock of domestic and foreign electronics-focused companies. The fund invests at least 80% of investor assets in companies that generate revenue from developing, advancing and using technology, and it focuses investment in at least five countries at any given time. The fund's expense ratio is relatively low at 0.91%, and its annualized one-, three- and five-year returns as of April 2015 are 21.4%, 19.9% and 20.1%, respectively.

  1. What are the primary benchmarks that track the electronics sector?

    Learn about the primary benchmarks that track the electronics sector. The electronics sector is the backbone of the technology ... Read Answer >>
  2. Why would an investor consider purchasing electronic stocks for their portfolio?

    Discover why an investor would consider buying electronics securities as part of an investment portfolio and which stocks ... Read Answer >>
  3. How much of the global economy is comprised of the electronics sector?

    Find out how much of the global economy is comprised of the electronics sector. Learn which regions are responsible for the ... Read Answer >>
  4. What is the growth rate of the electronics sector?

    Read some projections about the growth rate of the electronics sector. Find out which products are primed to be responsible ... Read Answer >>
  5. What are the most popular leveraged ETFs that track the electronics sector?

    Discover the most popular leveraged ETFs that track the electronics sector. Semiconductors are an integral member of the ... Read Answer >>
  6. What are the main factors that drive share prices in the electronics sector?

    Discover the main factors that drive share prices in the electronics sector. The electronics sector is capital-intensive ... Read Answer >>
Related Articles
  1. Investing

    FSANX,FBALX,FGBLX,FDYSX: Fidelity Balanced Allocation Funds

    Find out about the five balanced allocation mutual funds that Fidelity Investments offers for investors with moderate levels of risk tolerance.
  2. Investing

    3 Fidelity Mutual Funds with Long Track Records

    Learn about mutual funds, provided by Fidelity Investments, that have long track records. Learn about the risks and rewards of lower-quality bonds.
  3. Investing

    FAMRX, FASGX, FSANX: Introducing Fidelity Target Risk Funds

    Get a brief overview of Fidelity's seven target risk funds, with a description of each fund's asset allocation and expense ratio.
  4. Investing

    The Top 5 Equity Mutual Funds for 2016

    Understand how equity securities can enhance an investor portfolio, and discover the five best equity mutual funds to consider for 2016.
  5. Investing

    Fidelity's Active Funds Get Accolades From Lipper

    Fidelity received kudos from Lipper, with 22 awards bestowed on 18 different Fidelity mutual funds.
  6. Investing

    4 Best Fidelity Equity Mutual Funds

    Discover the top four mutual funds administered by Fidelity Investments that primarily invest in equities of companies with operations in the United States.
  7. Investing

    The 3 Mutual Funds With the Best Returns

    Learn about the top three mutual funds that have generated the best rates of return at reasonable volatility over the last 10 years.
  8. Financial Advisor

    The 4 Best Fidelity Funds for Value Investors in 2016

    Discover the four best mutual funds administered and managed by Fidelity Investments that specialize in investing in value stocks of various capitalizations.
  9. Investing

    The 5 Best American Funds

    Discover five of the best-performing mutual funds offered by American Funds, based on the funds' five-year average annualized returns.
  10. Investing

    Fidelity Is Selling More Index Funds

    Learn about Fidelity Investments' presence in the index fund marketplace as of 2016 and discover what the company is doing to increase its market share.
  1. Equity Fund

    An equity fund is a type of fund that uses investors' capital ...
  2. Semiconductor Industry ETF

    A sector-following fund that invests in developers, manufacturers ...
  3. Sector Fund

    A sector fund is a fund that invests solely in businesses that ...
  4. Capital Appreciation Fund

    A capital appreciation fund is a fund that attempts to increase ...
  5. United States Treasury Money Mutual Funds

    A United States Treasury money mutual fund is a mutual fund that ...
  6. Global Fund

    A global fund is a fund that invests in companies located anywhere ...
Hot Definitions
  1. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  2. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  3. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  5. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center