The average technology fund is still in the red since the start of 2000 and the beginning of the tech wreck. But the real story is worse, much worse — and it's something investors should remember as the Nasdaq composite climbs above 4,000 again.
The tech wreck began on March 10, 2000, when the tech-laden Nasdaq composite index hit its all-time record of 5048.62. By the end of the bear market, the Nazz had fallen to 1114.11 — a 78% decline. But fund investors were hit even harder.
How much? Currently, there are 159 technology funds, assuming you count each share class as a separate fund. Those funds are down 20.7% since 2000. In contrast, funds that track the Standard & Poor's 500 stock index have gained an average 46.2%. The technology wreck, which ran from March 10, 2000, to October 9, 2002, ripped 80% from the average tech fund, vs. 43.1% for the average S&P 500 index fund.