ETF Trends
ETF Trends

After seven years of hibernation, technology stocks and exchange traded funds (ETFs) have been making a comeback on the sly. The tech-loaded Nasdaq-100, which practically collapsed in the early turn of the century, has regained its health, as evident by the performance of the ETF that tracks it: PowerShares QQQ Trust (QQQQ). Currently, QQQQ is up 19.2% year-to-date, and its expense ratio is 0.2%. ETFGuide reports that the Nasdaq-100 includes the 100 largest domestic and international non-financial companies listed on the Nasdaq stock market.

Technology Select Sector SPDR (XLK) also is up 16.8% year-to-date. Its performance makes it one of the best performing industry sectors within the S&P 500. Top holdings in XLK include Apple (AAPL), IBM (IBM), Intel (INTC), Microsoft (MSFT) and Google (GOOG), and the expense ratio is 0.23%. For more narrowly-focused areas of technology, investors can consider these ETFs with their year-to-date performance:

  • First Trust Dow Jones Internet Index (FDN) – up 15.0%
  • SPDR S&P Semiconductor (XSD) – up 12.5%
  • iShares S&P GSTI Networking (IGN) – up 11.7%
  • iShares S&P GSTI Semiconductor (IGW) – up 11.2%
  • iShares S&P GSTI Software (IGV) – up 10.7%

For full disclosure, some of Tom Lydon’s clients own QQQQ.

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.