Technology exchange traded funds are once again receiving a boost from Apple (NasdaqGS: AAPL) shares, which broke through $500 on Monday.
The technology sector represents innovation and economic growth for investors, and has been able to outpace the S&P 500 in 2012. As the momentum continues, leading tech company Apple has investors focused on the sector aggressively.
Safety sectors such as utilities and consumer staples are lagging in 2012, with aggressive plays like financials and technology back in investor favor. But is the tech sector overbought?
Apple has managed to outperform the broad market and has given the sector renewed interest. The outstanding fourth quarter earnings and success of the iPhone and iPad have taken the spotlight. Share prices of Apple went from $420 to $450 overnight on earnings, reports David Gillie for The Street. [Nasdaq-100 ETF Breakout Hampered by Google]
“Tech firms had come out of this recession enjoying double-digit growth in technology investments from corporations. And indeed, there are still reasons to be confident about longer-term trends favoring tech firms,” says analyst Robert Goldsborough for Morningstar. [ETF Chart of the Day: Technology]