How 3 Tech Giants Drive Fund Performance

One particular headwind for the performance of the technology index has been Apple’s share price falls - along with index heavy weights Google and Facebook

Samuel Meakin 21 July, 2016 | 8:00AM
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The technology sector was amongst the best-performing equity sectors over the last three and five years, returning 13% and 11% on an annualised basis, respectively. Over the past year to the end of May 2016, the MSCI World Information Technology index has been broadly flat in US dollar terms.

It is impossible for any tech fund to have an overweight position in Apple

This short timeframe has seen large swings, with a low reached in February this year, only for the market to then recover that lost ground. Amid an uncertain economic backdrop, this sector has continued to outperform the wider market as measured by the MSCI World index, which was down almost 4% over the period in US dollar terms.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Alphabet Inc Class C2,793.44 USD0.65Rating
Apple Inc149.32 USD0.46Rating
Facebook Inc A315.81 USD-3.92Rating

About Author

Samuel Meakin  is a fund analyst for Morningstar