The FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks have been the darlings of the decade-long bull run and amid Covid-19, investors aren’t socially distancing their capital from them either. Right now, the tech titans are certainly throwing their weight around the capital markets right now, which bodes well for tech-focused exchange-traded funds (ETFs).
However, Washington certainly has something to say about it.
“The most powerful figures in tech were hit with tough questions and documents that raised concerns about their competitive tactics during a high-profile antitrust hearing on Wednesday,” a CNN report noted. “Of the tech titans, which included the CEOs of Amazon (AMZN), Apple (AAPL), Facebook (FB) and Google (GOOGL), some fared better than others in the first hours of the hearing.”
In a who’s who of technology leaders, each respective CEO was on the hot seat.
“Jeff Bezos, Amazon’s CEO, acknowledged, albeit earnestly and transparently, that Amazon may have improperly used third-party seller data to inform its own product decisions — a key concern over the company’s approach to the competition,” the CNN report added. “Apple CEO Tim Cook, on the other hand, got off pretty lightly. Despite some early questions about whether Apple favors certain developers on its App Store, there were relatively few questions about Apple’s App Store guidelines for developers, which have been the main complaint among critics.”
It remains to be seen whether this will rattle tech-focused exchange-traded funds (ETFs) that are heavy with holdings of these tech giants. So far, nothing appears to slow down tech, which should appease the bulls.
Tech ETFs to Trade if You’re a Bull
Speaking of which, traders looking to play the bullish side of tech can use the Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL). TECL seeks daily investment results of 300% of the daily performance of the Technology Select Sector Index, which includes domestic companies from the technology sector.
For broad market exposure without leverage, investors wanting a piece large cap tech action can look to the Fidelity MSCI Information Technology Index ETF (FTEC). FTEC 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.
Other ways to get broad tech exposure include the Technology Select Sector SPDR ETF (NYSEArca: XLK). XLK tries to reflect the performance of the Technology Select Sector Index, which is comprised of technology and telecom sector of the S&P 500.
For more market trends, visit ETF Trends.
