ETF Trends
ETF Trends

Investors have poured into stable, old technology stocks last year, but are quickly becoming disappointed by the group’s uninspiring expansion. Consequently, more are taking a look at high-growth tech names and sector-related exchange traded funds.

Jim Cramer, the “Mad Money” host, highlighted a large rotation in dedicated money out of plain-vanilla tech names and into more growth-intensive companies, reports Abigail Stevenson for CNBC.

The shift in dedicated money is significant as the money-management core principle shies away from frequent trading and usually promises to stick with a sector after money has been allocated.

The change in strategy occurred in response to disappointing results and low guidance from Intel (NasdaqgGS: INTC) and Microsoft (NasdaqGS: MSFT). Additionally, Hewlett-Packard (NYSE: HPQ) reported poor earnings Tuesday earnings, which sent company stocks plunging 10% Wednesday.

Consequently, while money managers typically don’t leave a sector entirely due to diversification needs, they have moved into another area of the tech space. Cramer pointed out that asset managers have shift away from low-growth value stocks and into high-growth tech names, such as Google (NasdaqGS: GOOG), Facebook (NasdaqGS: FB), Amazon (NasdaqGS: AMZN), Netflix (NasdaqGS: NFLX) and Priceline (NasdaqGS: PCLN).

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