The information technology sector has surpassed financials as the largest sector in the S&P 500 index for the first time since early 2002, Howard Silverblatt, senior index analyst for Standard & Poor's, told

IT currently makes up 16.26% of the S&P's market value, compared to 16.19% for financials.

Technology funds like Wayne Collette's Columbia Technology fund have been solid performers for both three-year and five-year periods, as managers look for opportunities in the large-, mid-, and small-cap space throughout the world.

While technology stocks fared well in 2007 - posting an average gain of 15.5% on the S&P - tech stocks have lost almost 7% so far this year, mostly due to a terrible January and February.

Despite this bad news, S&P Equity Strategist Alec Young is forecasting a 17.4% increase in profits by the end of this year.

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