“Despite some negatives, we believe there are worthwhile investments in IT,” Cathers said.
The S&P analysts singled out IBM, Oracle (ORCL), Microsoft and Apple Inc. (NasdaqGS: AAPL). These companies are also major component holdings in tech and information technology ETFs.
Vanguard Information Technology Index Fund (VGT) tries to reflect the performance of the MSCI U.S. Investable Market Information 25/50 Index. VGT has an expense ratio of 0.19%.
SPDR Technology Select Sector Fund (XLK) tries to reflect the performance of large-cap tech stocks, holding various IT industry components, such as computers, software and IT services. XLK has an expense ratio of 0.20%.
S&P gives these ETFs an “overweight” score based on performance and cost factors.
PowerShares QQQ
For more information on the tech sector, visit our technology category.
Max Chen contributed to this article.