Institutional investors are "underweight" technology stocks overall, yet they still really love big names in the sector like Alphabet, Facebook and Microsoft, according to a new report out Tuesday from eVestment, which tracks money manager ownership trends.
The quarterly report showed that as a whole, large-cap growth equity funds significantly went underweight the broader tech sector at the end of the second quarter 2017, the latest period in which data is available. The researchers looked at nearly 7,000 equity strategies from investors like mutual funds and pension funds.
The five most heavily weighted stocks were Alphabet, Apple, Amazon, Facebook and Microsoft. No surprises there. But the average weight of tech stocks was 28.4 percent, significantly lower than the nearly 31 percent weighting tech has in the Russell 1000 Growth Index as a whole.
The strange disparity serves as a reminder that these five giant stocks don't make up an entire sector, and much attention paid to those big names often takes away from what's happening elsewhere in the sector.