The technology sector, the largest sector weight in the S&P 500, has been a solid performer for much of that year. Heading into the fourth quarter, it looks like tech stocks and exchange traded funds such as the Vanguard Information Technology ETF (NYSEArca: VGT) and the Technology Select Sector SPDR (NYSEArca: XLK) can keep delivering for investors.
Semiconductor stocks and ETFs have recently been durable performers as semiconductor stocks are rebounding to steady the broader technology sector, but that does not mean the gains are over for this suddenly hot group.
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The technology sector’s recent bull run is lifting Nasdaq-related exchange traded funds to new highs and some traders believe that trend can continue such as the broad market ETFs like the PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech heavy Nasdaq-100 Index, have recently been in rally mode and some market observers do not see the party ending in the near-term.
QQQ, one of the largest U.S. ETFs, has equal-weight equivalents equal-weight equivalents such as the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEArca: QQQE) and the First Trust NASDAQ-100 Equal Weighted Index Fund (NasdaqGS: QQEW).
“Historically, the stock market trades defensively prior to the election if the race is thought to be tight. Optimism best describes expectations for third-quarter profits, which is far different than the pessimism that was apparent prior to the release of second-quarter results. The strongest sectors in the market include technology and the industrials. These areas have remained resilient during a period of rapidly shifting leadership,” according to See It Market.