“Ten of the 52 companies comprising the S&P 1500 semiconductors & semiconductor equipment industry each hold more than $2.8 billion of cash and equivalents on their balance sheets led by Intel,” notes S&P Capital IQ.
S&P Capital IQ has overweight ratings on XLK and SOXX. Despite the solid performances offered by those ETFs, investors have pulled a combined $430.8 million from the two funds this year.
Investors have added $554.7 million to the Vanguard Information Technology ETF (NYSEArca: VGT), which is up 5.6% this year. VGT had a 16.8% weight to Apple, a Microsoft weight of 8.1% and a 3.5% Facebook allocation at the end of May. S&P Capital IQ rates the ETF overweight.
Technology Select Sector SPDR
Tom Lydon’s clients own shares of Apple.