Expectations for a strong Twitter Inc initial public offering is lifting tech-related stocks and exchange traded funds, especially in the emerging markets where the sector is at a 13-year high.
The MSCI Emerging Markets and Information Technology Index is hovering around its highest point since April 2000 as Twitter said last month that it filed for an IPO, Bloomberg reports.
“Talk of a high valuation for Twitter is likely boosting prices of tech companies in emerging markets,” David Riedel, the president of Riedel Research Group Inc., said in the article. “Any news flow that reminds investors of the strength and attractiveness of tech investing makes investors look around the world for similar investment ideas and raises the valuations on the whole group.” [ETF Categories That Just Keep On Winning]
The EGShares Technology GEMS ETF (NYSEArca: QGEM) has gained 29.5% year-to-date. In comparison, the MSCI Emerging Markets Index is down 5.4% year-to-date, and the S&P 500 Index is up 20.7% so far this year.
However, investors should know that the EGShares Technology ETF is slated to shutdown October 7.