FILE PHOTO: The U.S. flag is seen on a building on Wall St. in the financial district in New York, U.S., November 24, 2020. REUTERS/Brendan McDermid/File Photo
Though it is unclear how long the change in market leadership will last, the shift highlights a dilemma that has confronted investors throughout the last decade. Limiting tech exposure has mostly been a losing bet for years and the coronavirus pandemic accelerated trends that stand to benefit the group.
The technology sector along with shares of big tech-related companies -- Amazon, Google-parent Alphabet and Facebook -- account for about 37% of the market-cap weighted S&P 500, giving them outsized influence on the index’s gyrations and investors’ portfolios. Fund managers polled by BofA Global Research named “long tech” as the market’s most crowded trade for the eighth straight month.
Efforts by U.S. and European regulators to curtail the market dominance of companies such as Alphabet and Facebook are another pressure point for the industry. Assets in the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq 100 index, this month hit their highest amount on record, Lipper data showed.
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Source: Forbes - 🏆 394. / 53 Read more »