Growth funds are shying away from technology and instead looking at construction and manufacturing areas, stocks that they have not considered investments in for almost a decade, according to The Wall Street Journal.
The best performing large-stock growth funds have approximately 25% invested in technology at present, down from 37% just three years ago, according to Morningstar.
On the other hand, three years ago, manufacturing stocks had approximately 15% invested in them, and now, they have about 24%. This increase can be attributed to the fact that greater emphasis has been placed on energy and industrial material stocks, especially after Hurricane Katrina.
The switch is also spurred by a shift in the technology sector, which has gone from the top-performing to the worst-performing sector in recent years.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.