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Fund Spy

Big Tech Stakes Equal Big Risk

A closer look at some tech-heavy U.S. equity funds.

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Tech stocks are hot. While the sector took a hit in the downturn of late 2018, the technology-fund Morningstar Category has been the strongest performer of any in Morningstar’s database over three, five, 10, and 15 years. The category has also bounced back of late; it was one of the best performers in 2019 through Oct. 17 with a 24.6% gain. 

Tech valuations may not be at March 2000 levels, but owning a big stake in the sector now may represent a significant risk. Let’s take a closer look at some of the heaviest tech investors among diversified U.S. equity funds. 

Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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