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).
Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) or Google (NASDAQ: GOOG) or (insert your technology giant here).
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.