Some investors look to diversify amid big tech rally

NEW YORK: Rising valuations and hefty year-to-date gains for big technology stocks are pushing some investors to diversify away from the sector that has led markets for years.

Tech stocks have soared this year, and their big weighting in the S&P 500 has helped push the index to records with a 25.1% year-to-date gain in 2021.

Some investors are worried the valuations may have ascended into nosebleed territory. Google-parent Alphabet, for instance, trades at a 12-month forward price-to-earnings ratio of 26.6, compared to a valuation of 21.1 for the S&P 500.