Tech Turmoil Spells ETF Rebounds With Apple, Google

Following disappointing earnings reports from Apple (NasdaqGS: AAPL), Alphabet (NasdaqGS: GOOGL) and Microsoft (NasdaqGS: MSFT), technology sector exchange traded funds (ETFs) are under pressure. That includes the PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech heavy Nasdaq-100 Index.

Other ETFs that track the Nasdaq-100 include the First Trust Nasdaq-100 Tech Index (NasdaqGM: QTEC) and the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEArca: QQQE), which track the Nasdaq-100 on an equal-weight basis.

If there is a silver lining to that index’s recent struggles it is that investors that missed the previous Nasdaq run higher can gain favorable entry points in the event Nasdaq stocks and ETFs rebound.

Related: 46 Tech ETFs to Tap Into Big Growth Names

“But we feel that the sell-off is overdone now and expect to see these three shares get picked up by bargain hunters. You can only keep high-quality companies like these down so long. With Apple down almost 17 percent since we exited the QQQ ETF, it is looking like a great investment today. There is a lot of talk about peak-iPhone and slowing sales of a lot of its core products, but we expect things will pick up,” according to a Seeking Alpha analysis of QQQ.

Of course, QQQ will need help from Apple, Microsoft and the so-called FANG stocks – Facebook (NasdaqGS: FB), Amazon (NasdaqGS: AMZN), Netflix (NasdaqGS: NFLX) and Google to bouce back because the traditional Nasdaq-100 is heavily allocated to those names.