7 Best Tech Index Funds

The S&P 500's information technology sector had the best performance of all sectors in 2020 – despite the first-quarter drop – returning 44% versus 16% for the broader index. With that type of performance, investors may be interested in tech index funds to buy this year. While some analysts believe that cyclical stocks in sectors such as energy and consumer discretionary may do better in 2021 as the economy rebounds, Kristina Hooper, chief global market strategist for Invesco, says don't count out tech. She continues to favor some tech sector exposure, as she expects "many tech stocks to continue to benefit from trends that accelerated during the pandemic." Here are seven tech index funds to consider.
MARKET PARTICIPANTS AND strategists say investors should expect a challenging yield environment this year as the Federal Reserve is expected to keep rates at historically low levels – likely keeping a lid on the yields of the safest fixed-income investment, U.S. Treasurys.

It's possible that income-seeking investors may need to accept a little more risk if they want more yield. That means considering dividend-paying stocks or going outside the U.S. to tap into the global bond market, which includes emerging markets.

Combined with monetary and fiscal stimulus, inflation expectations may increase, causing the yield curve to slope up as rates for longer-dated maturities rise.

visit me:: https://medium.com/5-lat-niewinnosci-hd-2020/ogl%C4%85danie-za-darmo-25-lat-niewinno%C5%9Bci-2020-80ea96daa106

"A positively sloped yield curve generally suggests that the market believes that GDP growth is ahead," he says. "It's a good indication for future growth and inflation."

[ SEE: 7 Best ESG Funds to Buy. ]
Jeffrey Buchbinder, equity strategist for LPL Financial, says bond investors need to have patience and brace for lower returns. The current yield for the 10-year U.S. Treasury note is around 1.15%, and the firm is targeting a 10-year Treasury range of 1.25% to 1.75% for year-end 2021 on the idea that the economy rebounds and inflation normalizes.

"However, we have a bias toward the lower end of this target as accommodative Federal Reserve policy and foreign buyers drawn to the relatively higher U.S. rates may keep a limit on potential yield increases," he says.

Buchbinder also forecasts modest returns for bonds. Last year, the benchmark Bloomberg Barclays US Aggregate Bond Index had a total return of 6.87%, but for 2021, he expects flat to low-single-digit returns for the index.

With a small uptick in rates expected if the economy improves, Buchbinder says investors could consider adding mortgage-backed securities and investment-grade corporate bonds. "MBS may not offer the upside potential of corporate bonds, but they can be more resilient when rates rise," he says.

John Loffredo and Robert DiMella, co-heads of MacKay Municipal Managers, say the municipal bond market may benefit under President-elect Joe Biden's administration as new policies could result in greater infrastructure spending. With Biden's focus on addressing climate change, too, there could be a greater volume of infrastructure-related muni bond issuance of interest to impact-oriented investors for its environmental, social and corporate governance impact.

by::https://medium.com/25-lat-niewinno%C5%9Bci-hd-1080/25-lat-niewinno%C5%9Bci-sprawa-tomka-komendy-2020-ogl%C4%85daj-8b4e9ebd4656

Credit Outlook Remains Positive
2020's pandemic lockdowns shook credit markets. Since then, those markets have recovered – and for 2021, the outlook for credit "is still constructive," MacDonald says.

During 2020, investment-grade corporations issued a record amount of debt as they sought to raise cash during the pandemic, and now these companies have "a war chest of liquidity." Valuations are high, and he doesn't expect spreads between the different types of investment-grade credits to narrow much.

High-yield credit, also known as junk bonds, could see some gains. Junk bonds were routed in early 2020, and like investment-grade credit, they rebounded. Because of the demand for yield, investors could return to this market, MacDonald says, and he is keeping an eye on the possibility of spreads tightening versus other fixed-income classes.