10 Best, 10 Worst Technology Funds
09/05/08 - 05:25 PM EDT
Kevin Baker
As the Dow lost 4.40% and the S&P 500 slipped 4.85% this week, the technology-heavy Nasdaq-100 index fared worse, tumbling 7.32% in the four trading days ending Thursday. Technology funds, excluding inverse funds, also shed the same amount on average. So far this year, the group has plummeted 19.33%.
The economic picture is dim. Challenger, Gray & Christmas reported that August firings rose 12% to 88,736 compared with 12 months earlier, with job losses expected to continue through the year. More than 3.4 million Americans collecting unemployment benefits are more interested in buying the basics -- food, rent and gasoline -- than the latest computer upgrade or flat-screen TV. Semiconductor funds, the most economically sensitive of the technology funds, crashed, with the Ultra Semiconductor ProShares(USD Quote - Cramer on USD - Stock Picks), leveraged 200% to the Dow Jones U.S. Semiconductor Index, losing a fifth of its value, or 20.64%. The second-worst performer, ProFunds Semiconductor UltraSector ProFund(SMPIX Quote - Cramer on SMPIX - Stock Picks), plunged 17.34%, dragged down by its 150% leverage to the same index. Index members leading the way include MEMC Electronic Materials(WFR Quote - Cramer on WFR - Stock Picks), down 20.40%; Marvell Technology Group(MRVL Quote - Cramer on MRVL - Stock Picks), with a loss of 19.11%; Silicon Image(SIMG Quote - Cramer on SIMG - Stock Picks), minus 17.25%; and ON Semiconductor(ONNN Quote - Cramer on ONNN - Stock Picks), with a decline of 16.17%. Another holding, National Semiconductor(NSM Quote - Cramer on NSM - Stock Picks) sank 11.02%, hurt by lower earnings caused by saturated and slowing demand for mobile-phone handset chips. The Dow Jones U.S. Technology Index is tracked by the Ultra Technology ProShares(ROM Quote - Cramer on ROM - Stock Picks), at 200% leverage, and by the ProFunds Technology UltraSector ProFund(TEPIX Quote - Cramer on TEPIX - Stock Picks), at 150% leverage, resulting in losses of 15.79% and 12.66%, respectively. Holdings of Ciena(CIEN Quote - Cramer on CIEN - Stock Picks) nosedived 26.67%, as the company warned that telecom firms are delaying new orders due to economic uncertainty. Likewise, Corning(GLW Quote - Cramer on GLW - Stock Picks) shares shattered 20.08% on a less-positive outlook for LCD TV screen glass. Dell(DELL Quote - Cramer on DELL - Stock Picks) dropped 19.24% as the company pondered a dramatic change in strategy, potentially selling off worldwide manufacturing plants to save as much as $3 billion in labor and related costs.| Worst PerformingTechnology Sector Funds for the Week Ending Thursday | ||||
| Fund | Ticker | Rating | Fund Type | 1 Week Total Return |
| Ultra Semiconductor ProShares | USD | E | ETF | -20.64% |
| ProFunds Semiconductor UltraSector ProFund | SMPIX | E- | Open-End | -17.34% |
| Ultra Technology ProShares | ROM | E+ | ETF | -15.79% |
| Internet Infrastructure HOLDRs Trust | IIH | C+ | ETF | -13.80% |
| ProFunds Technology UltraSector Profund | TEPIX | E | Open-End | -12.66% |
| Fidelity Advisor Electronics Fund | FELAX | E | Open-End | -11.40% |
| Fidelity Select Electronics Portfolio | FSELX | E | Open-End | -11.09% |
| iShares S&P North American Tech-Semicond Index Fund | IGW | E+ | ETF | -10.96% |
| Rydex Series - Electronics Fund | RYSIX | E | Open-End | -10.93% |
| SPDR S&P Semiconductor ETF | XSD | E | ETF | -10.55% |
| Source: Bloomberg & TheStreet.com Ratings | ||||
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