The Nasdaq-100 exchange traded fund is up 11% year to date to outperform the S&P 500. The technology-heavy ETF has rallied to the highest levels since the dot-com wreck.
The index is comprised of 100 tech stocks listed on the Nasdaq. Many small tech stocks are getting a boost from Facebook preparing an initial public offering, and some are wondering if the mania over the Facebook IPO is driving another bubble.
Since the Dec. 31, 2011 closing level of 2,6053.15 points, the NASDAQ Composite, a broader index, has rallied 11.54% to 2,905.66 points, a level unmatched since the dot-com age, reports David Huber for IRA.com.
SPDR Select Sector Technology ETF (NYSEArca: XLK) has gained about 5.7% year-to-date, marking a four-year high, reports Matt McCall for Seeking Alpha. Vanguard Information Technology (NYSEArca: VGT) has been able to outperform XLK, up 7.6%, possibly due to the more diversified portfolio. [NASDAQ-100 ETF Hits 11-Year High on Apple Blowout Earnings]
Healthy earnings reports from Apple Inc. (NASDAQ: APPL), and Netflix inc. (NASDAQ: NFLX) have rallied the broad market, and the tech sector. The sector also rose last week after the announcement that social media giant Facebook would be offering their first initial public offering of shares later this year. [NASDAQ-100 ETF Breakout Hampered by Google]
Meanwhile, stocks and major indices took off after the Labor Department reported that the U.S. added 243,000 jobs in January, taking the unemployment rate down to 8.3%, the lowest since February 2009, reports Kate Gibson for MarketWatch.