Potential investors should be aware that this tilt could make the fund more susceptible to market downturns, as witnessed in the recent sell-off in growth stocks, but the ETF could also make significant gains in a rallying market.

In contrast, XLK and IYW lean toward large, established tech names. While the tilt toward large-cap names, like Microsoft (NasdaqGS: MSFT) and Apple (NasdaqGS: AAPL), help keep these ETFs stable during down markets, the investments are also slower to move during market rallies. XLK allocations include mega-cap 70.7%, large-cap 18.9% and mid-cap 10.4%. IYW weights mega-cap at 63.9%, large-cap 18.4% and mid-cap 13.9%.

PowerShares DWA Technology Momentum Portfolio

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

 

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.