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4 / 5 Stars
#99 in Large Growth
U.S. News evaluated 466 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 40.64 percent over the past year, 16.54 percent over the past three years, 25.74 percent over the past five years, and 9.49 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||6.2%|
|3 Years (Annualized)||16.5%|
|5 Years (Annualized)||25.7%|
|10 Years (Annualized)||9.5%|
Franklin DynaTech is more diversified than its name would suggest.
As of March 05, 2014, the fund has assets totaling almost $2.07 billion invested in 125 different holdings. Its portfolio consists primarily of shares of large companies.
Despite its name, this fund's portfolio offers more than just access to the usual technology suspects. True, more than a third of its stock holdings are in the hardware and software sectors, but management's main focus is on finding innovative companies, not on sticking to any particular corner of the market. Lately, management has been finding plenty of opportunities in healthcare companies, which have at times comprised roughly 40 percent of the fund's stock portfolio. That position is, as of the end of the third quarter of 2010, down to a much more modest--but still significant--18 percent. Notably, names like Teva Pharmaceuticals Industries and Express Scripts occupy prominent spots in the fund's portfolio.
In 2010, the fund benefitted from its exposure to the Chinese search engine Baidu, which, thanks in large part to Google's worsening relationship with Beijing, returned well over 100 percent. Through late December, the fund had returned nearly 19 percent, which put it comfortably ahead of the broader market. The fund has returned 40.64 percent over the past year and 16.54 percent over the past three years.
This fund's distinctive nature was perhaps most evident in 2000. When the tech bubble burst, devastating most tech-heavy funds, Franklin DynaTech managed to finish the year in the top half of Morningstar's large-growth category. As of late December, the fund's trailing 10-year returns landed it in the top 5 percent of that same category. The fund has returned 25.74 percent over the past five years and 9.49 percent over the past decade.
Management looks for companies that employ cutting-edge technologies. Because of its focus on innovation, management tends to dip down into the market-cap spectrum to find mid-cap companies that, while less established than the Googles and Apples of the tech world, have developed new and promising ideas. Management also has a strong buy-and-hold discipline, as evidenced by the fund's 31 percent turnover ratio. By comparison, a fund that replenishes its entire portfolio once a year would have a ratio of 100 percent.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Robert Johnson, Jr., has managed the fund since its 1968 inception. Matt Moberg came on board in 2004.
Franklin DynaTech Fund has an expense ratio of 0.94 percent.
Like all stock funds, this one comes with some risks.