10 Best, 10 Worst Technology Funds

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), 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), plunged 17.34%, dragged down by its 150% leverage to the same index. Index members leading the way include MEMC Electronic Materials(WFR Quote), down 20.40%; Marvell Technology Group(MRVL Quote), with a loss of 19.11%; Silicon Image(SIMG Quote), minus 17.25%; and ON Semiconductor(ONNN Quote), with a decline of 16.17%. Another holding, National Semiconductor(NSM Quote) 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), at 200% leverage, and by the ProFunds Technology UltraSector ProFund(TEPIX Quote), at 150% leverage, resulting in losses of 15.79% and 12.66%, respectively. Holdings of Ciena(CIEN Quote) nosedived 26.67%, as the company warned that telecom firms are delaying new orders due to economic uncertainty. Likewise, Corning(GLW Quote) shares shattered 20.08% on a less-positive outlook for LCD TV screen glass. Dell(DELL Quote) 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