The technology sector is blurring the lines: Apple is getting into the e-reader business, Google has phones and Microsoft is charging ahead in its quest for search engine dominance. Just try to pick a winner. Or save yourself a headache and own them all in a technology exchange traded fund (ETF).
Why pick one when you can invest in all of those, and then some, with one ETF? There’s a lot of uncertainty in the tech sector as the big players branch out into new areas. Maybe all of them will be successful in their ventures, or perhaps only one or two will see big rewards. [Bulls Out on Tech ETFs.]
By using a technology ETF, you eliminate the need for guessing by giving yourself exposure to the entire sector, which is enjoying a resurgence. According to a PricewaterhouseCoopers’ report on the technology sector, deal activity should increase this year as balance sheets get stronger, credit markets loosen and valuations improve.
Hewlett-Packard (NYSE: HPQ) reported a strong fiscal first quarter, noting huge sales and profit gains. The CEO proved that brevity is the soul of wit by noting simply, “The market is better.” HP had $31.2 billion in sales and income of $2.3 billion. That’s a 25% increase on numbers from a year earlier. [How to Play Tech Earnings with ETFs.]
For more stories about technology, visit our technology category.
- Technology Select Sector SPDR (NYSEArca: XLK)
- iShares Dow Jones U.S. Technology (NYSEArca: IYW)
- Vanguard Information Technology (NYSEArca: VGT)
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.