Buying the Tech ETF Dip | Page 2 of 2 | ETF Trends

Company stocks that exhibit higher beta typically outpace benchmark indices during market rallies but decline more quickly during corrections.

Oppenheimer argues that a good way to capture the tech space is by giving each company an equal weight as a way to capture the potential for “broad-based sector leadership,” instead of overweighting larger companies. For instance, the Guggenheim S&P Equal Weight Technology ETF (NYSEArca: RYT), which follows an equal-weight indexing methodology, has gained 3.0% year-to-date, whereas XLK is up 0.9% so far this year.

Additionally, Oppenheimer points to the tech sector seasonality trade as technology stocks typically outperform the S&P 500 between April and August.

Technology Select Sector SPDR

For more information on the tech sector, visit our technology category.

Max Chen contributed to this article.