Tech Stock Rally Leaves Some Funds Behind
Plus, Vanguard says 401(k) investors stayed the course in 2008, Macquarie Group buys Delaware Investments, more leveraged ETF warnings, and more.
The rising tide has not lifted all tech funds.
Technology stock funds have led the domestic-equity pack in 2009. The average tech fund was up 37.6% for the year through Aug. 19. The top mutual fund in the category, Fidelity Select Electronics (FSELX), is up a massive 55.5% over that same time period. (In all, there are nine tech funds with returns topping 50% for the year to date.) Managers we've spoken with recently report that tech companies' earnings have been better than expected, and that these firms are better equipped to navigate the recession because many of them have been through the tech bust in 2000. Even so, there are funds that haven't benefited as much from the category's current hot streak.
Courtney Goethals Dobrow does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.