The superlatives for technological shares this year do not stop. But instead of capitalizing on the current rally, they continue to pump even more money into it.
The tech sector outpaces everyone else at an impressive pace. Within 17 weeks, only one company in the sector has finished in red. And within four months, companies generally added about $ 1 trillion to their market capitalization. Even with current estimates unseen for such a bullish market, the sector is attracting ever greater interest among investors.
In the past week, the top three ETFs that attracted the most interest were Invesco QQQ Trust Series 1, which tracks NASDAQ100, Select Sector SPDR Fund and Vanguard Information Technology ETF. And while US stocks suffered a $ 6 billion cash outflow last week, technology stocks attracted $ 1.3 billion.
Only on April 23, investors raised a total of $ 440 million in the Vanguard Fund. This makes a total cash flow of $ 21 billion to the fund for only a week. Vanguard surpassed State Street Corp., which competes with XLK and has become the most popular technology ETF.
Vanguard has the largest share in Apple, followed by Microsoft. The two companies roughly make up 30% of the fund.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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