Most fund mangers know that their portfolios are over concentrated in these sectors but simply don't want to risk losing their jobs over doing the right thing, that is, diversifying more. Investor enthusiasm for these two areas has inflated the values of many key companies, most notably Microsoft and Cisco Systems. Although great companies, again, if you are thinking long-term, is it good to not be overly exposed to these two sectors of the market.
For this reason, assembling a mini portfolio of well diversified individual stocks can be an excellent addition for most portfolios. In addition to eliminating the fund management fees, investors can also better control tax consequences and thereby more consistently grow their portfolios. Additional benefits include the ability to more squarely focus on companies that pay dividends if that is your goal.