With the environment shifting, investors may want to focus on specific sectors and areas of the market this year, such as technology names and related exchange traded funds.

Year-to-date, the iShares U.S. Technology ETF (NYSEArca: IYW) is up 0.8% and Technology Select Sector SPDR (NYSEArca: XLK) is 0.6% higher. [Investors Rotate Into Growth-Oriented Tech Stocks, ETFs]

BlackRock global chief investment strategist Russ Koesterich argues that technology will continue to do well, CNBC reports.

Koesterich pointed out that while the tech space is growing, we are not repeating a dotcom-era bubble of runaway valuations.

“Today the biggest component in the NASDAQ is… Apple. And it’s trading at a P/E ratio of less than 15x earnings, cheaper than many regulated utility companies,” Koesterich said. “Plus, the new crop of companies is using asset light business models to produce real revenue at an astonishing pace.”

The tech space is sporting a slightly higher valuation than the broader equities market, but it isn’t too high for a growth-oriented sector. For instance, IYW shows a 19.1 price-to-earnings ratio and XLK has a 18.5 P/E.

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