Tech stocks struggled in Q1 2025, but top companies like Microsoft and Apple had strong earnings

From Morningstar: 2025-05-16 04:19:00

The technology sector struggled in Q1 2025, with tech stocks lagging behind. Despite this, the largest companies like Microsoft and Apple delivered strong earnings results. Morningstar metrics show that the Magnificent Seven stocks were undervalued even before the tariff selloff, indicating potential for growth in Big Tech.

For investors interested in the tech sector, Morningstar highlighted seven promising ETFs focusing on tech stocks. These ETFs have Medalist Ratings of Bronze and above, with a minimum of £500 million in assets under management. The Xtrackers MSCI World Information Technology UCITS ETF 1C, iShares Digital Security UCITS ETF USD, and SPDR MSCI World Technology UCITS ETF are among the top performers.

The Xtrackers MSCI World Information Technology UCITS ETF 1C rose 10.51% over the past year, outperforming the average fund in the equity technology category. Similarly, the iShares Digital Security UCITS ETF USD gained 16.56% and beat its benchmark by 5.26 percentage points. The SPDR MSCI World Technology UCITS ETF rose 12.54% over the past year, outperforming its benchmark by 1.24 percentage points. 1. The stock market saw a significant drop today, with the S&P 500 falling by 2% due to concerns over rising inflation rates and potential interest rate hikes by the Federal Reserve.

2. A new study published in the Journal of Medicine found that wearing a mask significantly reduces the spread of COVID-19, with a 60% decrease in transmission rates among those who wore masks consistently.

3. The United Nations reported that over 82 million people worldwide have been forcibly displaced from their homes due to conflict, persecution, and human rights violations – the highest number in recorded history.

4. Researchers at Stanford University have developed a new technology that can extract drinkable water from the air using a solar-powered device, providing a sustainable solution to water scarcity in arid regions.

5. The World Health Organization announced that the global vaccination rate for COVID-19 has surpassed 5 billion doses administered, with over 40% of the world’s population now fully vaccinated against the virus.



Read more at Morningstar: The Best ETFs for Tech Stock Investors