The technology sector, along with related exchange traded funds (ETFs), plowed through the economic recovery with force. Tech companies are showing strong fundamentals and investors who were dramatized by the last tech bust shouldn’t be too cautious of this new tech sector boom.

According to James Brumley from Investopedia, the technology sector had the second-most upside earnings surprises last quarter, with 88.7% of its large-cap stocks showing upside surprises, boasts the lowest projected 5-year PEG ratio of 1.1 versus the market average of 1.4 and experienced the greatest revenue growth of 8.8% year-over-year last quarter, as stated in iStockAnalyst. [Why Tech ETFs May Be Leading the Way.]

Brumley observes that investors who were burned during the tech bust in the last decade are now overly cautious on the sector. He also adds that the next cycle could lead to excessive and even dangerously high confidence in the tech sector again.

Tech shares dipped on Monday trading after reports that Google would reduce its Web presence in China, according to China and Google have been in heated talks over censorship in search results on the Web search engine. Google is continuing talks with China, but advertisers are already being advised by industry insiders to switch to rival companies.

For those who don’t like picking out individual stocks, consider investing in an ETF.

Technology Select Sector SPDR (NYSEArca: XLK). XLK tries to reflect the performance of publicly traded equities of companies in the technology economic sector. The fund invests at least 95% of assets in companies of the tech sector including industries from internet and IT services, software, computers, peripherals, electronics, semiconductor equipment and telecommunications.

Top holdings include: Microsoft Corporation (NASDAQ: MSFT) 10.29%, Apple Inc. (NASDAQ: AAPL) 8.3%, International Business Machines (NYSE: IBM) 7.51%, AT&T Inc. (NYSE: T) 7.23% and Google Inc. (NASDAQ: GOOG) 6.53%.

iShares Dow Jones U.S. Technology (NYSEArca: IYW). IYW tries to reflect the performance of the Dow Jones U.S. Technology Index. The fund invests holds a minimum of 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. The remainder of the assets are invested in securities that will help the fund track the underlying index.

Top holdings include: Microsoft Corporation (NASDAQ: MSFT) 12.07%, Apple Inc. (NASDAQ: AAPL) 9.37%, International Business Machines (NYSE: IBM) 8.71%, Cisco Systems Inc. (NASDAQ: CSCO) 6.97% and Google Inc. (NASDAQ: GOOG) 7.46%.

For more information on the tech sector, visit our technology category.

Max Chen 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.