“One dynamic that has been benefiting large tech players has been the strong demand growth for smartphones, both in the developed world and in emerging markets, driven by better products and improved mobile Internet applications. Apple is the clear leader in the smartphone business, and other players are expected to benefit,” Goldsborough wrote. [Technology ETFs Power Stock Rally]
In 2012, technology spending is set to rise 6%, with below average gains in software, hardware and services, reports The Economist. Thanks to Apple’s iPad, the tablet-computer market will grow from virtually nothing in 2009 to $35 billion in 2012, according to JPMorgan. [Nasdaq-100 ETF at Highest Level Since Internet Bubble]
Government has a large in-direct impact upon tech spending, so the austerity measures in Europe and future Eurozone uncertainty will affect future performance and pricing.
Sector ETFs for technology include:
- SPDR Select Sector Technology ETF (NYSEArca: XLK)
- PowerShares QQQ (NasdaqGM: QQQ)
- Vanguard Information Technology ETF (NYSEArca: VGT)
- First Trust Cloud Computing ETF (NYSEArca: SKYY)
- Market Vectors Semiconductor ETF (NYSEArca: SMH)
- iShares Dow Jones U.S. Technology Index fund (NYSEArca: IYW)
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own AAPL.