Why we just bought more of this tech fund

Saltydog analyst explains how he's getting exposure to rallying tech stocks as the S&P hits record highs.

Tech funds recover as US indices record all-time highs

Last week the S&P 500, Dow Jones Industrial Average and the Nasdaq set new record highs, climbing above the previous peak seen in July. 

Since the beginning of October, the S&P 500 has gone up by 5.2%.

Unfortunately, it has been difficult for UK Investors to benefit from this recent rise as it has coincided with the pound strengthening relative to the US dollar. During October the pound went from $1.23 to $1.29, a gain of over 5% - this would have wiped out all of the profits seen by any funds tracking the US markets.

With the current uncertainty in the UK, as we head towards an election in December, the pound may stop gaining in value for a few weeks.

It's already dropped by around 1% so far this month, and if this continues then it would help overseas investments.
Much of the growth in the US has been driven by the large technology companies, like Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).

When funds investing in the US look good, it's not unusual to find that the 'Tech and Technology' sector is doing even better.

That was certainly our experience at the beginning of this year. 

In January we invested in the Fidelity Global Technology and the Polar Capital Global Technology funds.

They had a great start and made steady gains up until April, they then struggled for a month, but soon recovered and went on to hit record highs in July. The performance of the two funds had been similar, but the Polar Capital fund had done slightly better.

Both funds fell during August, but the Fidelity fund started to recover earlier and as a result has done significantly better over the last three months. We still hold both funds, but we have recently added to the Fidelity fund.

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