Why Tech ETFs Deserve Another Look
November 3rd at 3:00pm by Tom Lydon
After hitting the brakes in the early part of the year, technology exchange traded funds (ETFs) are now riding a wave of momentum that has them on pace to end the year on a solid note.
Since bouncing off their August lows, tech ETFs have wavered. That’s thanks to a lack of unity among the various sub-sectors, says Jim Farrish for Daily Markets. But now that the sector has surged past its April high, it could be worth another look. [Tech Companies and ETFs to Watch In 2010.]
Farris cites networking, semiconductors, internet and software as tech sector standouts, driven higher by a combination of low inventories, strong demand and a solid third quarter.
Gary Gordon for The Street is similarly bullish on the tech sector when it comes to places to stash cash that’s been perched on the sidelines. He particularly likes some of the broad tech ETFs, such as the PowerShares NASDAQ 100 (NASDAQ: QQQQ), or a fund that gives exposure to smartphone service providers and cloud computing companies, such as First Trust Dow Jones Internet (NYSE: FDN). [Tech ETFs: Sentiment Turns On a Microchip.]
You can find and research all of the technology ETFs in the ETF Analyzer, including:
- Vanguard Information Technology (NYSEArca: VGT)
- iShares S&P North America Technology (NYSEArca: IGM)
- iShares Goldman Sachs Software Index (NYSEArca: IGV)
- Technology Select Sector SPDR (NYSEArca: XLK)
Tisha Guerrero contributed to this article.
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.