Microsoft reports earnings on Thursday while Google parent Alphabet delivers results next Monday, Feb. 1.
“Technology stocks in the Standard & Poor’s 500 Index have plunged 8 percent in 2016 after seven straight years of annual gains. Their change in fortune mirrors a reversal in momentum stocks. The group, which helped power the bull market rally in equities, have been out of favor in 2016. A momentum ETF, in holds Apple as its the biggest component, has tumbled 8.1 percent this year, trailing the S&P 500,” according to Bloomberg.
Equal-weight ETFs do not feature the large allocations to tech titans such as Apple and Facebook that are found in traditional tech funds, meaning investors can experience less downside when the largest tech names retreat. XLK was in the top half of the sector SPDR ETFs in terms of annual gains last year.
Technology Select Sector SPDR
