Some funds have lost most of their 2024 gains in the span of just a few weeks, according to data compiled by FSA.
The recent sell-off in tech stocks has erased roughly $3trn in market value in less than a month, and investors have grown weary of a potential Fed policy error after the latest increase in US unemployment figures.
Sentiment for AI and technology stocks has since soured after a handful of big tech names reported quarterly earnings that fell short of expectations.
The S&P 500 index has declined over 5% in the span of a few weeks, dragged down by double digit declines in some of its biggest constituents such as Alphabet, Microsoft and Nvidia.
Other chip stocks have suffered the brunt of the selling over the period, with names such as ASML, AMD and Arm down 26%, 28%, 39% respectively.
As the downturn continues, some funds have been caught off guard by being heavily positioned in technology stocks on the back of enthusiasm for AI as an investment theme.
Below, FSA looks at the 30 funds* from the North America and technology equity sectors in Hong Kong and Singapore which have declined the most since tech stocks peaked on July 10.
| Fund | Performance since 10/7/2024 (%) | YTD performance prior to sell-off (%) | YTD performance (%) |
| VanEck Semiconductor UCITS ETF | -22.78 | 47.21 | 13.68 |
| iShares iShares Semiconductor ETF TR | -22.18 | 38.38 | 7.69 |
| SSGA SPDR S&P Semiconductor ETF TR | -19.99 | 18.56 | -5.14 |
| NB Next Generation Connectivity | -17.11 | 34.97 | 11.87 |
| HSBC Nasdaq Global Semiconductor UCITS ETF | -16.69 | 41.66 | 18.02 |
| JPM US Technology | -16.07 | 19.82 | 0.57 |
| Franklin Intelligent Machines | -15.94 | 29.03 | 8.47 |
| BlackRock Next Generation Technology | -15.8 | 18.98 | 0.18 |
| Franklin Shariah Technology | -15.23 | 26.98 | 7.64 |
| AB International Technology Portfolio | -15.11 | 31.46 | 11.6 |
| T. Rowe Price Global Technology Equity | -15.04 | 27.34 | 8.19 |
| BGF China Innovation | -15.01 | 13.91 | -3.19 |
| Pictet Digital | -14.35 | 25.86 | 7.8 |
| iShares Global Technology ETF | -14.08 | 29.14 | 10.96 |
| AXA World Funds Robotech | -13.89 | 16.45 | 0.28 |
| Mirae Asset Global X Blockchain UCITS ETF | -13.88 | 11.53 | -3.95 |
| SSGA The Technology Select Sector SPDR Fund | -13.86 | 23.94 | 6.76 |
| Eastspring Inv Global Technology | -13.72 | 32.48 | 14.3 |
| UBS (Lux) Equity Tech Opportunity | -13.61 | 21.14 | 4.65 |
| Janus Henderson Global Technology Leaders | -13.58 | 32.71 | 14.69 |
| Wellington Asia Technology | -13.53 | 22.06 | 5.54 |
| Franklin Technology | -13.48 | 23.69 | 7.02 |
| NB InnovAsia 5G | -13.45 | 13.44 | -1.82 |
| BlackRock GF World Technology | -13.44 | 29.34 | 11.95 |
| GS Global Future Technology Leaders Equity Portfolio | -13.36 | 8.28 | -6.19 |
| iShares US Technology ETF | -13.02 | 29.55 | 12.68 |
| Janus Henderson Global Technology and Innovation | -12.77 | 32.55 | 15.62 |
| iShares S&P 500 Information Technology Sector UCITS ETF | -12.73 | 36.71 | 19.31 |
| AXA AI & Metaverse | -12.71 | 17.91 | 2.93 |
| iShares Electric Vehicles and Driving Technology UCITS ETF | -12.59 | 7.64 | -5.91 |
Semiconductor exchange-traded-funds (ETFs) were among the hardest hit, where more than two thirds of their year-to-date gains were wiped out by the recent sell-off. One of these ETFs swung from a 18.56% gain in 2024 to being down 5.14% for the year.
Some actively managed funds have seen virtually all their 2024 gains wiped out in just a few weeks.
Others, however, are still up high single digits or double digits despite the recent downturn.
Richard Clode, portfolio manager of Janus Henderson Global Technology Leaders, is still confident in the outlook for certain tech stocks.
He pointed to a similar correction in the summer of 2023 after a strong first half-year, noting that “a lot of narratives get created to try and justify this but not a huge amount has changed”.
He said: “There has also been a growing debate on the sustainability of AI infrastructure capex without a return on that capex from incremental AI revenues and profits.”
“We argue that is just a timing issue as the capex will always have to precede the returns.”
*The fund performance was measured in US dollar terms based on data from FE fundinfo. The funds only include products that fall under the relevant Hong Kong SFC Authorised Mutual or Singapore Mutual sectors as classified by FE fundinfo.
