“We believe this pullback not only creates an opportunity but has positioned large cap Internet stocks well relative to the key factors many portfolio managers are seeking in today’s market,” May said.
Investors interested in taking broad approach to the sector can consider a number of tech-related ETFs.
For instance, the Global X Social Media Index ETF (NasdaqGM: SOCL), which tracks social media names like FB at 10.7% of the portfolio, LNKD at 9.5% and GOOG 5.3%, has declined 19.5% year-to-date. [Social Media ETF Struggles to Recapture 2013 Magic]
The First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and the PowerShares NASDAQ Internet Portfolio (NasdaqGM: PNQI) track more large-cap internet names. FDN holdings include AMZN 6.9%, FB 6.8%, GOOG Class A-shares 5.1%, GOOG 5.1% and LNKD 3.0%. PNQI tracks FB 8.2%, AMZN 7.9%, GOOG Class-A 4.2% and GOOG 4.1%. FDN has declined 7.9% and PNQI has decreased 9.7% year-to-date. [You May Not Want to Sell This ETF in May]
For more information on the tech sector, visit our technology category.
Max Chen contributed to this article.
Tom Lydon’s clients own shares of Amazon, Google and Facebook.