Long Term Perspective

The NYSE Arca Tech 100 Index is a price-weighted measure of 100 listed and over-the-counter stocks from 15 different industries. These include computer hardware and software development, semiconductors, networking, communications and data storage and processing. The NYSE Arca Tech 100 Index was formerly known as the PSE (Pacific Stock Exchange) Index. In September 2005, Archipelago Holdings purchased the Pacific Exchange and the Pacific Stock Exchange Tech 100 Index and in October 2005 renamed the Index the ArcaEx Technology 100 Index. In March of 2006, the New York Stock Exchange and Archipelago Holdings merged, creating NYSE Arca, and in April of 2006 the Index was renamed the NYSE Arca Tech 100 Index.  This index rose 4.7 percent in 2006, lagging most major indexes significantly. Overall, 2006 was an exception to the long-term trend. The 10-year average growth in this index surpasses all other major indexes at 20.2 percent in 2006 despite three yearly declines from 2000 – 2002 and a modest gain in 2006.

Short Term Perspective

The NYSE Arca Tech 100 Index had a month-end peak of 1167.91 in February 2000 and fell 67 percent to a month-end cyclical low of 385.73 in September 2002. This index is still in the process of recovering but made significant progress toward the old high. Many of the companies included in this index are household names – AOL, Yahoo, Microsoft, Texas Instruments, Lucent, Intel, and Amgen.

In November 2007, the NYSE Arca Tech 100 Index was 8.3 percent higher than the same month a year ago, compared to 18.5 percent in October. Despite a drop in November, the tech sector has shown some strengthening in 2007 overall after a sizeable downward reevaluation in mid-2006. This has been seen somewhat as a safe haven compared to the financials and most Small Caps. At the end of November, the NYSE Arca Tech 100 Index was 9.0 percent higher than at year-end 2006, compared to 7.3 percent for the Dow and 4.4 percent for the S&P 500. The Nasdaq, however, is slightly ahead at 10.2 percent year-to-date.

The NYSE Arca Tech 100 Index dropped 6.1 percent in November after posting a 3.6 percent advance the month before.