The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: Fidelity versus T Rowe Price
FSA compares two technology equity products: The Fidelity Global Technology Fund and the T Rowe Price Global Technology Equity Fund.
The Fidelity and T Rowe Price funds versus their benchmark index, the MSCI ACWI/Information Technology Index, and sector in Hong Kong. Source: FE Fundinfo. In US dollars.
Performance
Both products have been strong long-term performers, returning at least 130% to investors on a five-year cumulative basis, according to McDermott.
“Given both funds sit in a sector as innovative as technology, they are likely to see their strongest outperformance in growth markets, although both funds say they are style agnostic,” he said.
Discreet annual calendar performance (%)
| Fund / index / sector |
YTD 2020 |
2019 | 2018 | 2017 |
2016 |
| Fidelity Global Technology |
8.14 |
43.87 | -4.33 | 35.95 |
16.32 |
| T. Rowe Price Global Technology Equity |
22.44 |
31.85 | -10.92 | 46.01 |
4.91 |
| Index : MSCI ACWI/Information Technology |
9.96 |
47.52 | -5.47 | 42.27 |
12.71 |
| Sector : HKM Equity TMT |
14.88 |
37.65 | -9.51 | 35.09 |
4.25 |
Source: FE Fundinfo. In US dollars.
Both funds have performed similarly, McDermott added.
For example, 2019 and 2017 have been the strongest years for both funds in the past five years. On the flipside, both products were down in 2018, he said.
In terms of volatility, both products are slightly more volatile compared with their benchmark index and sector in Hong Kong on a three-year annualized basis, according to data from FE Fundinfo.
Three-year annualized volatility
| Fund / Index |
Volatility |
| Fidelity Global Technology |
22.25 |
| T Rowe Price Global Technology Equity |
22.32 |
| MSCI ACWI/Information Technology |
21.76 |
| Sector HKM Equity – TMT |
20.57 |
Source: FE Fundinfo. In US dollars.
Related Stories
Promoted Content
-
Nuveen broadens income sources via private capital and real assets
-
Accessing India’s tech future
-
Turning environmental hopes into investment reality
-
Ninety One: Finding opportunities in times of change
-
China’s post-pandemic growth gathers pace
-
How ETFs offer an active way to drive sustainable returns
-
Appetite for thematic investments grows amid rates and inflation concerns
-
Driving decarbonisation: how to access new forms of alpha
-
The year of living dangerously for income investors
-
Riding the wave of alternative income amongst HNWIs in APAC
