The excitement around artificial intelligence and the surprisingly strong U.S. economy has pushed a major tech ETF to a new all-time high, even as many investors remain skeptical of the rally. this year. The Selective Technology Sector (XLK) SPDR Fund closed at $178.24 per share on Monday, setting a new record high. The previous high water mark was from December 27, 2021, according to FactSet. Mount XLK 5Y XLK closed at a new record high on Monday. The fund has more than $51 billion in assets under management and an expense ratio of 0.10%, now up more than 50% from its recent low last October. The fund fell 28% last year as investors fled growth stocks as the Federal Reserve raised interest rates aggressively. Because of the way it defines sectors, XLK actually excludes some of the biggest companies that many investors refer to as “tech,” including Amazon and Alphabet. But the Big Tech names it holds dominate the fund. “We know of the growing concentration of Tech heavyweights in the S&P 500, but XLK delivers that with a steroid boost – AAPL and MSFT account for about 46% of the fund, plus 10% more For NVDA and AVGO, so that strength is Strategas ETF strategist Todd Sohn said in an email. XLK has seen about $2 billion in outflows year-to-date, including more than $700 million in the past month, according to FactSet. Investors fear this year’s rally isn’t sustainable Nasdaq announced earlier this month that it is conducting a special rebalancing of the Nasdaq 100 index to dilute the weighting of technology stocks. the biggest, in part because these stocks have become so influential that index funds are at risk of violating diversification regulations, and while there have been signs recently of “worst” fear of missing out” is drawing people back to the stock market, investors seem to prefer funds with a broader base or that use equally weighted criteria. The Vanguard Information Technology ETF (VGT), which has nearly $54 billion in assets under management, has also seen outflows this year. The iShares US Technology ETF (IYW) has brought in cash but still lags far behind in total assets at less than $14 billion. There is also an equally weighted technology fund — the Invesco S&P 500 Equal Weight Technology ETF (RSPT) — that has had modest inflows year-to-date and now has more than $3 billion in assets under development. manage.