Apple Inc. (NASDAQ: AAPL) is XLK’s largest holding. XLK and rivals such as the the Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC) and the Vanguard Information Technology ETF (NYSEArca: VGT) are among the ETF’s with the largest allocations to Apple. Cisco Systems (NASDAQ: CSCO) is also a top 10 holding in those ETFs.
Technology companies are still sitting on cash hoards that can be deployed in ways to improve value with investors. We are already seeing an increase uptick in company share buybacks and tech firms are now even issuing dividends.
Meanwhile, the industry continues to grow through innovation as more shift to cloud, progress into artificial intelligence and adopt internet of all things devices.
“The disconnect between Trump voters and “coastal elite” technology companies has highlighted that for all their election-season bluster, the industry has plenty of work to do on diversity, gender equity, and poverty within its own ranks,” reports CNBC.
For more information on the tech sector, visit our technology category.