Technology stocks and sector-related exchange traded funds have outperformed this year as investors piled into growth-oriented picks to capture improving corporate earnings.
Here’s a look at the 5 Most Popular Broad Technology Sector ETF Picks:
1) Technology Select Sector SPDR Fund (NYSEArca: XLK). XLK has been a go-to- choice among many market participants to capture tech sector names. XLK is up 21.1% year-to-date.
The Technology Select Sector SPDR Fund tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500. The ETF includes companies from technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services. Top holdings include Apple (NasdaqGS: AAPL) 15.6%, Microsoft (NasdaqGS: MSFT) 10.5% and Facebook (NasdaqGS: FB) 7.5%.
2) Vanguard Information Technology ETF (NYSEArca: VGT). VGT is the second largest tech sector-specific ETF. VGT is up 23.0% year-to-date.
The Vanguard Information Technology ETF tries to reflect the performance of the MSCI US IMI Information Technology 25/50 Index, which includes information technology stocks in the MSCI US IMI 25/50. The ETF leans toward some of the largest information technology names, such as AAPL 13.8%, MSFT 9.5% and FB 7.1%.
3) iShares U.S. Technology ETF (NYSEArca: IYW). IYW is up 23.1% year-to-date.
The iShares U.S. Technology ETF reflects the performance of the Dow Jones U.S. Information Technology Index, which includes all tech sector picks in the Dow Jones U.S. Index. Due to the Dow Jones’ classification of information tech names, healthcare technology stocks may be included while payment technology stocks are excluded. Top holdings include AAPL 18.4%, MSFT 12.3% and FB 8.8%.
4) First Trust Nasdaq-100 Tech Index (NasdaqGM: QTEC). QTEC is up 22.9% year-to-date.
The First Trust Nasdaq-100 Tech Index tries to reflect the performance of the Nasdaq-100 Technology Sector Index, which consists of companies in the Nasdaq-100 Index classified as technology according to the Industry Classification Benchmark. QTEC currently holds 34 components and more-or-less equally weights its holdings. Top holdings include Baidu (NasdaqGS: BIDU) 3.9%, FB 3.4% and AAPL 3.4%.
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5) Guggenheim S&P Equal Weight Technology ETF (NYSEArca: RYT). RYT is up 19.9% year-to-date.
The Guggenheim S&P Equal Weight Technology ETF tries to reflect the performance of the S&P 500 Equal Weight Information Technology Index, which is comprised of S&P 500 technology companies that are equally weighted. Top holdings include Xerox (NYSE: XRX) 1.7%, FB 1.7% and DXC Technology (NYSE: DXC) 1.7%.
For more information on the tech sector, visit our technology category.