The robust cash positions at many technology companies is another favorable trait for investors to consider.
“This offers a number of potential advantages. First, these companies potentially are insulated from the impact of rising interest rates, and may even benefit. As we recently noted, technology historically has been among the sectors the most insulated from yield curve shifts,” said BlackRock. “In addition, one of the consequences of the recent tax legislation is the prospect of companies repatriating cash back to the U.S. at favorable rates. This increases the potential for dividends, share buybacks or increased mergers and acquisition activity.”
IYW includes companies from technology hardware, storage, and peripherals; software; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components.
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of Apple, Facebook and Microsoft.