Technology exchange traded funds (ETFs) could see heightened action next month when mass production of low-cost children’s laptops begins. The project is called One Laptop Per Child and its goal is to bring computers and technology to children in developing nations, reports Steve Lohr for The New York Times.
The marketing campaign is titled, "Give 1 Get 1," in which American and Canadians can buy two of the laptops for $399. When North Americans purchase a "Give 1 Get 1" deal that runs from Nov. 12 to Nov. 26, one computer is sent to a child in a developing country and the other is sent to the family that ordered it. The donated computer is a tax-deductible charitable donation. Eventually, another goal is to have the laptops cost only $100 each.
So far the reviews have been positive of the computers designed with harsh climate conditions in mind. The laptops also use 10% less power than what a conventional laptop uses. Peru has said it will buy and distribute 250,000 of the laptops over the next year; Ital has purchased 50,000 of the laptops to distribute in Ethiopia. Mexico and Uruguay are also on board with the project.
If the laptops hit it big around the world, could it lead to future growth in demand for tech gadgets? While there are many technology ETFs, some of them, with their year-to-date performance, include:
- iShares S&P Global Technology Sector Index Fund (IXN) – up 14.6%
- iShares Dow Jones U.S. Technology Sector Index (IYW) – up 15.4%
- iShares Goldman Sachs Technology Index (IGM) – up 16.9%
- Technology Select Sector SPDR (XLK) – up 16.8%
- Morgan Stanley Technology ETF (MTK) – up 17.0%
- Vanguard Information Technology ETF (VGT) – up 15.5%
- First Trust NASDAQ-100-Technology Sector Index (QTEC) – up 14.9%
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.