According to research firm Bespoke, Technology has outperformed all other sectors by a massive margin this quarter:
Technology has rapidly evolved from a niche sector into the single most important driver of the global economy. Tech companies themselves have also never been bigger. Currently, six of the top ten largest market cap companies in the S&P 500 are tech firms.
The strong tech sector performance in Q3 was led largely by those very same mammoth companies. Apple is up 18% since the start of Q3, while Google, Amazon, and Facebook have gained 15%, 14%, and 12%, respectively.
Outperformance in the tech space — and increased economic reliance on technology to transform other sectors — means that every investor should probably have technology exposure in their portfolio. “The most important way to win in markets is to have relatively more investments in outperforming sectors and companies,” writes analyst Taki Tsaklanos.
So right now — and for the foreseeable future — the best sector to be in is technology.
The Technology SPDR ETF (NYSE:XLK) was mostly flat in premarket trading Wednesday at $47.77 per share. The largest technology-focused ETF with nearly $13 billion in assets under management has risen 11.44% year-to-date.