Tech funds inflow record smashed
Fund Inflows into the technology industry have surpassed the £20bn mark already for the current year despite raising concerns among a few fund managers that the “tech trade” is overextended.
Global equity funds associated with technology stocks took in another $673m in the week ending July 18, with the 12th straight week of inflows, bringing the total inflow for 2018 to $20.3bn, as per EPFR.
The S& P 500’s technology index gained 15.3 per cent so far in 2018, compared with other market’s 4.9 per cent gain.
The market gains are perhaps due to fears over a trade war and the US government’s tariffs on goods from some of its biggest trade partners including China.
Generally, the Faang Stocks like Amazon, Apple, Alphabet, Netflix, Facebook have dominated the rally.
China’s Trio BATS, Tencent has dropped more than 7 per cent this year, however, Baidu and Alibaba are up 12 per cent and 8.7 per cent respectively in the current year.
Investors and sucked into equity funds at a record pace.