Investors Shouldn't Be Scared Off by Tech ETF Performance | ETF Trends

Technology stocks and sector-related exchange traded funds have been among the best performers this year, but some are growing concerned over the lofty valuations in an extended bull market.

Investors, though, don’t have to be too worried about tech valuations as they are nowhere near dotcom crisis-era highs.

The Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC), which tracks the MSCI USA IMI Information Technology Index, is up 19.8% year-to-date, compared to the 10.3% gain in the S&P 500.

There are still a number of strong supports that could help bolster the technology sector’s outlook, even in the face of rising valuations.

“Fundamental factors have the potential for long trajectory for tech outperformance,” Denise Chisholm, Fidelity sector strategist, told ETF Trends in a call.