Are tech stocks a good investment in 2024?

Elevated interest rates and inflation in the near term make stock selection crucial in the tech sector. Technology stocks have led the stock market to new all-time highs in 2024. In fact, the Technology Select Sector SPDR ETF (ticker: XLK) has significantly outperformed the S&P 500's total return in the past 12 months.

Are tech companies a good investment?

Tech companies now compose over 20% of the S&P 500 stock market index. With hundreds of billions of dollars pouring into index funds each year, that helps sustain growth for shares of the largest tech companies. Low dividends. Most technology companies pay minimal dividends. Tech companies in the S&P 500 average a dividend yield under 2%.

Are tech stock funds reviving in 2023?

After a brutal year for technology stock fund investors, 2023 has brought a revival and new momentum to the sector. For the tech stock funds that have outperformed in recent years, a common theme has been an emphasis on higher-quality tech names and less exposure to the most volatile stocks in the sector.