Tech stocks: Responding to the change in market leadership

Seeing increasing dispersion

While technology stocks as a whole have outperformed the overall market year-to-date, there is increasing dispersion within the sector, particularly in the mega-cap names.

Last week, Netflix disappointed investors with lower-than-expected new subscribers, resulting in a 14% fall in its share price.  The technology sector's performance year-to-date highlights the wide range of opportunities in this sector. 2017 was characterised by mega-cap outperformance with momentum a key driver of markets. Which technology companies are most ESG-friendly? Momentum is now extended to extreme levels, but sector leadership has changed - with communications equipment, software and IT services the best performing subsectors year-to-date. Internet names have fallen back...