The Latest News:
- Technology stocks lead the broader markets Friday as the S&P 500 tops 1,600. [Technology ETF: Loser Becomes Leader?]
- Tech companies are trading at cheap valuations compared to non-cyclical sector stocks as investors piled into dividend-yielding utilities and consumer staples.
- “You have these tech companies that have double-digit earnings growth, no debt, huge cash balances and they’re trading at 12 times forward earnings, while you have a utility in Ohio at 16 times earnings,” James Swanson, chief investment strategist at MFS Investment Management, said in a Wall Street Journal article. “If you don’t think there’s a recession coming, how far do you go with this game?”
- Nevertheless, tech firms are also jumping on the dividend train as more start giving back to shareholders from their copious cash hoards.
iShares Dow Jones U.S. Technology Sector Index Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.