Some popular 401(k) funds are packed with tech stocks

Recent volatility in popular technology stocks — including Amazon, Apple, Microsoft, Facebook and Google parent Alphabet — is a reminder to check the tech weighting in your retirement portfolio.

How tech-savvy are you? 

Recent volatility in popular technology stocks — including Amazon, Apple, Microsoft, Facebook and Google parent Alphabet — is a reminder to check the tech weighting in your retirement portfolio.

There’s nothing wrong with having a big slug of tech stocks in your 401(k) or IRA retirement fund. These shares have swelled the assets of many an aspiring retiree in recent years. The “right” amount depends on your other holdings, your appetite for risk, and how close you are to retirement.

The important thing is to know what you are invested in and be comfortable with it, so any further volatility doesn’t stress you out, or worse, freak you out and trigger panic selling. 

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One popular 401(k) fund that stands out for its tech weighting is the $114.5 billion Fidelity Contrafund. In a list of the most popular equity-focused funds in 401(k) plans, by assets, Contrafund ranks third. (The financial information company Brightscope, which provided the list, says the actual amount of 401(k) assets is proprietary; it is undoubtedly a large chunk of assets.)

Contrafund was 36.7 percent tech in the latest monthly data, from April, according to Morningstar. That’s as high as the monthly measure has been in two decades, and compares with the 20.1 percent in tech for the S&P 500 at the end of April. The fund’s top holdings included a 6.9 percent stake in Facebook, 4.5 percent in Amazon, 3.8 percent in Alphabet, 3.7 percent in Apple and 2.5 percent in Microsoft. 

In the grand scheme of things, the recent downdraft in tech isn’t a huge deal. The S&P 500 has been down only slightly during the turbulence.

It’s worth…

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