Top 3 Technology Mutual Funds for 2022

FSELX, CGTYX, and SCMIX are the best technology mutual funds for 2022

Individual investors seeking access to a professionally managed portfolio of technology securities may wish to consider a technology mutual fund. These funds allow investors to access a broad range of technology securities, thereby mitigating risk and simplifying the investment process while maximizing diversification within the sector.

Some popular technology stocks often included in these mutual funds’ portfolios are major players like Alphabet Inc. (GOOG) and Amazon.com Inc. (AMZN), as well as newer, smaller, and fast-growing companies.

Key Takeaways

  • Technology mutual funds outperformed the benchmark Morningstar US Technology Index over the past year.
  • The funds with the best one-year trailing total returns are FSELX, CGTYX, and SCMIX.
  • The top holding of the first fund is NVIDIA Corp., and the top holding of the second and third funds is Lam Research Corp.

We look at the top three technology mutual funds as ranked by their one-year trailing total return (TTM) as of the close of markets on Dec. 14, 2021. The funds were selected from a group of technology funds that are open to new investors, require a minimum initial investment of $1,000 at most, and have assets under management (AUM) of at least $50 million.

All three of these funds outperformed the benchmark Morningstar US Technology Index, which provided a one-year trailing total return of 36.2%. They also all significantly outperformed the total return for the category average for technology sector funds, which was 15.8%.

All data below is from Dec. 15, 2021.

Fidelity Select Semiconductors Portfolio (FSELX)

  • One-Year Trailing Return: 55.5%
  • Expense Ratio: 0.70%
  • Trailing-12-Month (TTM) Dividend Yield: 0.30%
  • Assets Under Management: $9.4 billion
  • Inception Date: July 29, 1985

FSELX is managed by Adam Benjamin. The fund seeks to achieve capital appreciation by investing in companies engaged in the design, manufacture, or sale of electronic components, as well as in equipment vendors and distributors.

More than 87% of FSELX assets are invested in U.S. equities, with non-U.S. equities making up nearly all of the remainder. Technology stocks comprise nearly three-fourths of the portfolio. The fund primarily invests in large-cap growth equities.

FSELX’s top three holdings are semiconductor companies: NVIDIA Corp. (NVDA), Marvell Technology Inc. (MRVL), and NXP Semiconductors N.V. (NXPI).

Columbia Seligman Global Technology Fund (CGTYX)

  • One-Year Trailing Return: 39.1%
  • Expense Ratio: 0.95%
  • Trailing-12-Month (TTM) Dividend Yield: 0.38%
  • Assets Under Management: $2.2 billion
  • Inception Date: May 23, 1994

CGTYX is managed by Paul H. Wick, Sanjay Devgan, and Shekhar Pramanick. The fund seeks to achieve long-term capital appreciation by targeting global technology- or technology-related companies.

CGTYX invests in companies across market capitalizations, and about 96% of its assets are invested in U.S. companies. Its top three holdings are Lam Research Corp. (LRCX), a supplier of wafer fabrication equipment to the semiconductor industry; Apple Inc. (AAPL), a multinational technology company offering consumer electronics, software, and online services; and Teradyne Inc. (TER), an automatic test equipment designer and manufacturer.

Columbia Seligman Technology and Information Fund (SCMIX)

  • One-Year Trailing Return: 39.0%
  • Expense Ratio: 0.91%
  • Trailing-12-Month (TTM) Dividend Yield: 0.32%
  • Assets Under Management: $11.8 billion
  • Inception Date: June 23, 1983

SCMIX is managed by Paul H. Wick, Sanjay Devgan, and Shekhar Pramanick. The fund targets long-term capital appreciation by investing in an equity strategy focused on technology-related securities.

The fund invests in companies across the market capitalization spectrum. Information technology stocks comprise nearly 86% of the fund’s holdings, though the fund also holds communication services, industrials, and other names. It invests in a blend of growth and value stocks. Its top three holdings are Lam Research, Apple, and Teradyne, all described above.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Morningstar. “Morningstar US Technology TR USD.” Accessed Dec. 16, 2021.

  2. Morningstar. “Home Page.” Accessed Dec. 16, 2021.

  3. Morningstar. “Fidelity® Select Semiconductors: FSELX.” Accessed Dec. 15, 2021.

  4. Fidelity, Mutual Funds Research. “FSELX: Fidelity® Select Semiconductors Portfolio.” Accessed Dec. 15, 2021.

  5. Morningstar. “Fidelity® Select Semiconductors: FSELX: People.” Accessed Dec. 15, 2021.

  6. Morningstar. “Fidelity® Select Semiconductors: FSELX: Portfolio.” Accessed Dec. 15, 2021.

  7. Morningstar. “Columbia Seligman Global Tech Inst3: CGTYX.” Accessed Dec. 15, 2021.

  8. Columbia Threadneedle Investments. “Columbia Seligman Global Technology Fund: CGTYX.” Accessed Dec. 15, 2021.

  9. Morningstar. “Columbia Seligman Global Tech Inst3: CGTYX: People.” Accessed Dec. 15, 2021.

  10. Morningstar. “Columbia Seligman Global Tech Inst3: CGTYX: Portfolio.” Accessed Dec. 15, 2021.

  11. Morningstar. “Columbia Seligman Tech & Info Inst2: SCMIX.” Accessed Dec. 15, 2021.

  12. Morningstar. “Columbia Seligman Tech & Info Inst2: SCMIX: People.” Accessed Dec. 15, 2021.

  13. Columbia Threadneedle Investments. “Columbia Seligman Technology and Information Fund: SCMIX.” Accessed Dec. 15, 2021.

  14. Morningstar. “Columbia Seligman Tech & Info Inst2: SCMIX: Portfolio.” Accessed Dec. 15, 2021.

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description