$1 trillion technology rally keeps on rolling

$1 trillion technology rally keeps on rolling
Tech valuations are at levels never seen before this bull market, but the sector is seeing more interest than any other.
APR 29, 2019

For technology stocks, the superlatives are endless this year. But rather than take profits and run, investors are flooding the space. The sector is outperforming every other industry. In 17 weeks, only one has seen technology finish in the red. And more than $1 trillion in market capitalization has been added over the span of four months. (More: How mid-cap growth funds owned the first quarter) Even with tech valuations at levels never seen before this bull market, the sector is seeing more interest than any other. "Tech flows are white hot," Steven DeSanctis, a U.S. equity strategist for Jefferies, wrote in a note to clients Sunday. In the week ended April 26, the three U.S. stock exchange-traded funds that attracted the most interest were tech-centric: the Invesco QQQ Trust Series 1, which tracks the Nasdaq 100, the Technology Select Sector SPDR Fund, and the Vanguard Information Technology ETF. And while U.S. equities had more than $6 billion in net outflows last week, tech stocks saw $1.3 billion enter their coffers, according to Bank of America Merrill Lynch data, citing EPFR Global. Fueled in large part by a massive trade April 23, investors poured more than $440 million into the Vanguard fund, known by its ticker VGT, last week. That amounts to the largest weekly inflow ever for the $21 billion fund. It recently overtook its State Street Corp. competitor, XLK, to become the most popular technology sector ETF on the market.https://cdn-res.keymedia.com/investmentnews/uploads/assets/graphics src="/wp-content/uploads2019/04/CI119526429.PNG"

Apple Inc., which is set to report earnings on Tuesday, is VGT's largest holding. Microsoft Corp. is the second-largest, and combined, the two companies make up roughly 30% of the ETF. (More: `Investing on steroids' pays off as thematic ETFs outperform)​

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.