The technology sector has been the biggest winner post election. This is especially due to the tight race to White House between Donald Trump and Joe Biden. Though the election results are not yet finalized, the vote count failed to produce a clear Democratic sweep as was expected.
Investors are now betting for the divided government with the likelihood of the Republicans maintaining control of the Senate. A divided government would reduce the chances of major tax increases and tighter regulations that investors expected if Democrats scored an electoral sweep. This scenario will limit the new legislation and dims the prospect of an antitrust breakup of mega-cap tech companies (read: Trump or Biden: Whose Victory Will Benefit Tech ETFs?). According to Dan Morgan, a senior portfolio manager at Synovus Trust Company, “the market is betting that the Senate will stay in the Republican majority whatever happens in the presidential election. A massive capital gains increase is not going to get through a Republican controlled Senate. This has a big positive impact on large-cap tech stocks that have generated huge profits for shareholders in recent years.” Given this, we have highlighted five tech ETFs from different industries that are at the forefront of the post-election rally and gained the most after Election Day on Nov 4. WisdomTree Cloud Computing Fund ( WCLD Quick Quote WCLD - Free Report) – Up 6.2% This ETF offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index. It holds 54 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $854.9 million in its asset base and trades in an average daily volume of 618,000 shares. It has a Zacks ETF Rank #1 (Strong Buy) (read: Here's Why Cloud Computing ETFs Are Hot Right Now). O’Shares Global Internet Giants ETF ( OGIG Quick Quote OGIG - Free Report) – Up 5.9% The fund invests in some of the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential by tracking the O’Shares Global Internet Giants Index. It holds a basket of 73 stocks and charges 48 bps in annual fees. OGIG has been able to attract $481.4 million in its asset base and trades in an average daily volume of 227,000 shares. Franklin Disruptive Commerce ETF ( BUYZ Quick Quote BUYZ - Free Report) – Up 5.8% This fund seeks capital appreciation by investing in innovative companies benefiting from the transformation in the e-commerce space. It provides access to companies that are related to new online markets, streamlined procurement systems, and game-changing ways to deliver goods and services. The ETF has attracted $27.7 million in its asset base since its debut on Feb 25 and trades in an average daily volume of 19,000 shares. It has 62 stocks in its basket and charges 50 bps in annual fees (read: ETFs Set to Surge on Virtual Healthcare Deal). Invesco DWA Technology Momentum ETF ( PTF Quick Quote PTF - Free Report) – Up 5.5% This fund follows the Dorsey Wright Technology Technical Leaders Index, and provides exposure to 39 companies that are showing relative strength (momentum). It is relatively illiquid and unpopular with AUM of $247.4 million and an average daily volume of 22,000 shares. The ETF charges 60 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Tech ETFs to Buy on Decade's Strongest PC Growth). SPDR FactSet Innovative Technology ETF ( XITK Quick Quote XITK - Free Report) – Up 5.2% With AUM of $267.1 million, this fund seeks to provide exposure to companies with robust revenue growth that may provide leading-edge products and services. It follows the FactSet Innovative Technology Index and holds 95 stocks in its basket. The product has an expense ratio of 0.45% and trades in an average daily volume of 22,000 shares. Want key ETF info delivered straight to your inbox?
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