The recent market correction has brought down the valuations of many technology giants. Bargain hunters may jump on the more attractively priced group with a tech-related exchange traded fund.
For instance, the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) tracks companies that generate at least 50% of annual sales and revenues from the Internet, with a focus on large and active firms.
FDN has held up surprisingly well in the recent market volatility, only falling off 0.4% over the past week, and it was one of the first few ETFs to shift above its 200-day moving average on the bounce back. Year-to-date, FDN has gained 12.3%. [Potential ETF Opportunities in Overdone Stock Market Correction]
Facebook (NasdaqGS: FB), Amazon (NasdaqGS: AMZN), Google (NasdaqGS: GOOG) and Netflix (NasdaqGS: NFLX) were among the top tech stocks to buy back after the market plunge, reports Anita Balakrishnan for CNBC.
Youssef Squali, Internet company analyst at Cantor Fitzgerald, also argued that travel-booking company Priceline (NasdaqGS: PCLN) may also be a good catch as the travel market shows no signs of weakening.
The correction has provided long-term investors with a great entry point to acquire many companies on the cheap.
“There have been a number of people that have stayed on the sidelines, and this pullback has given them an opportunity to jump in,” Squali said. “People are looking at these as good opportunities, probably great opportunities if you look at the next couple of years.”