Yahoo Finance Top Ranked Tech ETFs in Focus
US stocks rallied earlier this week after the Trump administration announced that it would delay tariffs on many items, including smartphones, laptops and toys that are made in China, until mid-December.
Technology stocks rallied the most, with Apple (AAPL), leading the gains. Technology sector has the highest revenue exposure to foreign markets—more than 58%, and therefore it remains vulnerable to trade conflicts and global growth slowdown.
Tech is still the best performing sector this year, up more than 25%, while the S&P 500 has gained about 14%. Four tech giants—Microsoft (MSFT), Apple, Amazon (AMZN) and Facebook (FB)--accounted for 19% of the S&P 500’s total return through July 18 this year, per WSJ.
Tech earnings were better than expected with 78.7% companies beating EPS estimates and 63.8% beating revenue estimates, per Zacks Earnings Trends.
Investors continue to pour money into these stocks despite stretched valuations due to excellent growth potential, particularly from areas like cloud computing and artificial intelligence. Further, high quality stocks tend to perform better than others during economic downturns.
To learn more about the Technology Select Sector SPDR Fund (XLK), the Vanguard Information Technology ETF (VGT) and the iShares U.S. Technology ETF (IYW), please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Technology Select Sector SPDR Fund (XLK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
