The software sector has proven to be anything but soft recently, as related exchange traded funds (ETFs) are trending above their 200-day moving average. Software can benefit in a slowing economy as companies look to ways to become more efficient in their operations, reports Trang Ho for Investor’s Business Daily. Companies may not cut the technology budget if they know they can improve their operations and save money down the road.
Software-related ETFs moving up recently include:
- iShares S&P North American Technology Software Index (IGV), up 10.7% for the past month and down 1.1% year-to-date
- Software HOLDRs (SWH), up 9.7% for the past month and down 1.3% year-to-date
- PowerShares Dynamic Software Portfolio (PSJ), up 8.4% for the past month and down 6.1% year-to-date
The main software players in the ETFs, and in the industry, include Adobe Systems (ADBE), Oracle (ORCL), Symantec (SYMC), and Microsoft (MSFT); all helping drive the performance of these ETFs.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.