None of the nine sector SPDR exchange traded funds can hold a candle to the nearly 12% returned by the Health Care Select Sector SPDR (NYSEArca: XLV), but the Technology Select Sector SPDR (NYSEArca: XLK) has climbed an admirable 4.7.

With many of XLK’s marquee holdings listed on the Nasdaq and the Nasdaq Composite surpassing dot-com era highs, there are good reasons to consider tech ETFs such as XLK at the moment.

“Angelo Zino, an equity analyst at S&P Capital IQ, believes there are number of catalysts that should support sector growth. Within hardware and storage, he expects double-digit smartphone growth in 2015 and 2016 to be augmented by tripling in wearables, albeit off a smaller base. He adds that data centers usage for cloud adoption is providing robust growth prospects to offset traditional storage,” according to a new research note from S&P Capital IQ.

XLK has gained acclaim, in part, because of its 17.7% weight to Apple (NasdaqGS: AAPL). That is one of the largest weights to the iPhone maker among all ETFs. Microsoft (NasdaqGS: MSFT) is XLK’s second-largest holding at a weight of 9%. High-flying Facebook (NasdaqGS: FB) is XLK’s fifth-largest holding. That stock is up 12.3% and on Tuesday surpassed Wal-Mart (NYSE: WMT) in terms of market cap heft. [ETFs With big Apple Weights]

Semiconductor stocks have also been contributors to this year’s tech sector upside with the iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) up 5.5%.

“Zino expects that semiconductor fundamentals will experience a stronger second half of 2015 as PC inventory builds and Chinese demand for smartphones and mobile infrastructure increases,” according to S&P Capital IQ.

S&P Capital IQ has four-star ratings on Dow component Intel (NasdaqGS: INTC), Avago Technologies (NasdaqGS: AVGO) and Microchip Technology (NasdaqGS: MCHP). The research firm is bullish on long-term semiconductor industry capital spending plans. [Intel Woes Highlight Differences in Chip ETFs]

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