The latest rally in tech is fueling ETFs like the Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL), which has risen 44.12 percent year-to-date. Meanwhile, the inverse ETF Direxion Daily Technology Bear 3X ETF (NYSEArca: TECS) is down 35 percent YTD.
After a rocky end to 2018, investors are picking themselves up in 2019, but rather than deep-diving into the capital markets headfirst, they’re picking their spots and deploying capital more strategically. This is the case for all asset classes, whether it’s equities or fixed income.
2018 marked the worst year for stocks since 2008 and only the second year the Dow and S&P 500 fell in the past decade. In 2019, investors are no doubt reassessing their strategies for how to distribute their capital through the rest of the year.
The tech-heavy Nasdaq Composite declined 4 percent, but tech is beginning to rally in 2019. In the video below, CNBC’s Dominic Chu takes a look at technology ETFs as the sector has shown strong performance in the market for the last four trading days.
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