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).
“That said, in looking at the charts below, it is clear that large cap tech stocks leadership is aiding this move higher. Below are a series of charts showing this dynamic. Large cap tech is breaking out vs the S&P 500, while equal weight tech is grinding a bit. For those who like to position ahead of moves instead of waiting for a dip after the breakout, I think the XLK should lead to breakouts for broader Technology. But for now, it still pays to be selective,” adds See It Market.
Investors looking for tactical plays on chip stocks, a group that has been a key driver of tech sector upside this year, can consider the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) and the iShares PHLX Semiconductor ETF (NasdaqGM: SOXX).
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of QQQ.