When a Kiplinger 25 fund closes to new investors, we replace it because we believe the funds on our list should be available to all readers. American Century Small Cap Value (ASVIX (opens in new tab)), after a torrid recent run, closed in August.
When we looked for a replacement, we decided to shift things a bit. The Kip 25 roster was left with five funds that focus on small and midsize companies, but it lacked one that focuses on technology, a fast-growing sector. That’s why we're adding T. Rowe Price Global Technology (PRGTX (opens in new tab), $31.62) to the Kip 25.
Manager Alan Tu, who hunts all over the world for high-quality companies of any size, isn’t afraid to go his own way. He doesn't own Alphabet (GOOGL (opens in new tab)), Apple (AAPL (opens in new tab)) or Microsoft (MSFT (opens in new tab)), for example. The fund's top holdings – Korea-based internet platform Sea Limited (SE (opens in new tab)), software firm Atlassian (TEAM (opens in new tab)) and Zoom Video Communications (ZM (opens in new tab)) – are smaller by market value.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We're not bearish on the mega-cap companies," says Tu. But he sees promise in smaller ones. "We're early in this digital transformation era. A lot of the trends driving growth are accelerating, creating opportunities."
Software as a service, for example, is entering a new phase. Instead of going after big companies to sign long-term contracts – Atlassian is going straight to the consumer. Social media companies are evolving into e-commerce sites: Facebook users can buy certain wares directly on the platform. And the pandemic may have changed grocery shopping forever. That’s why Tu likes Grab, Southeast Asia's version of Uber Technologies (UBER (opens in new tab)) and DoorDash (DASH (opens in new tab)); he also has a stake in private grocery delivery service Instacart.
Earlier this year, Tu exited Chinese tech giants Alibaba Group (BABA (opens in new tab)) and Tencent Holdings (TCEHY (opens in new tab)), which are reeling from regulatory crackdowns. "We avoided a lot of carnage," he says. But the curbs aren’t a "deathblow," he adds, so those stocks may find a place in the fund again soon.
Tu is relatively new; he stepped in as manager in March 2019. But he has been a Price analyst since 2013, mostly for Global Technology, and he has the heft of Price’s analyst bench behind him. Since he took over, the fund has gained an annualized 42.4%, beating 83% of his peers.
-
-
Fed Raises Interest Rates Yet Again: What the Experts Are Saying
Federal Reserve The Fed's quarter-point rate hike was welcomed by the market and market pros, alike.
-
Stock Market Today: Stocks Swing Higher After Powell Presser
The Fed raised rates by 0.25%, as expected, and Powell promised to "stay the course until the job is done."
-
The 5 Best Actively Managed Fidelity Funds to Buy Now
mutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy Now
ETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozone
mutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
10 Bond Funds to Buy Now
Investing for Income Bond funds have seen sizable losses so far this year, but yields are now rising to attractive levels for income-starved investors.
-
Vanguard Global ESG Select Stock Profits from ESG Leaders
mutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and Why
Kip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.
Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
-
Do You Have Gun Stocks in Your Funds?
ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
