We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Best Tech ETFs In Nasdaq's Worst Week Since December
Read MoreHide Full Article
The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns. The Nasdaq Composite, which is tech-heavy in nature, slipped 2.4% last week, marking its worst week since December.
The U.S. benchmark treasury yield started the week at 3.63% and ended the week at 3.74% while the two-year U.S. treasury yield started the week at 4.44% and ended the week at 4.50%. Such an uptick in rates caused a decline in Wall Street. Growth sectors like technology were hit harder.
Rising rate worries dampen the appeal of the stocks that rely on easy borrowing for superior growth. Hence, shares of high-growth technology companies remain in a tight spot in such a scenario. Moreover, earnings results were not satisfactory.
Earnings from 79.9% of the tech sector’s market capitalization that have reported results so far are down 20% from the same period last year on 4.2% lower revenues, with 65.1% beating EPS estimates and 67.4% beating revenue estimates. The earnings beat ratio is the lowest in the preceding 20 quarters, while the revenue surprise is also toward the lower end of the 5-year range. Overall, the sector is expected to report an earnings decline of 18.2%.
Apple Inc. (AAPL - Free Report) missed the Zacks Consensus Estimate for earnings for the first time since 2016. Intel (INTC - Free Report) also came up with weaker results and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers. Although Amazon (AMZN - Free Report) beat earnings and revenue estimates, it posted the least profitable holiday quarter since 2014.
Against this backdrop, below we highlight a few tech ETFs those were the least-hurt last week.
Best-Performing Tech ETFs of Last Week
Invesco DWA Technology Momentum ETF (PTF - Free Report) – Down 1.2%
The underlying Dorsey Wright Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Zacks Rank #1 (Strong Buy) ETF charges 60 bps in fees.
Invesco Dynamic Networking ETF – Down 1.3%
The underlying Dynamic Networking Intellidex Index is comprised of stocks of networking companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The Zacks Rank #1 ETF charges 63 bps in fees.
Technology Select Sector SPDR Fund (XLK - Free Report) – Down 1.4%
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The Zacks Rank #2 (Buy) charges 10 bps in fees.
Franklin Intelligent Machines ETF (IQM - Free Report) – Down 1.6%
The Franklin Intelligent Machines ETF seeks capital appreciation by investing in innovative companies furthering techniques that automate or enhance everyday tasks. The fund charges 50 bps in fees.
The underlying BlueStar Quantum Computing and Machine Learning Index consists of a modified equal-weighted portfolio of the stock of companies whose products or services are predominantly tied to the development of quantum computing and machine learning technology. The fund charges 40 bps in fees.
The underlying S&P Global 1200 Information Technology Sector Index measures the performance of companies that are part of the information technology sector of the economy. The fund charges 40 bps in fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Best Tech ETFs In Nasdaq's Worst Week Since December
The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns. The Nasdaq Composite, which is tech-heavy in nature, slipped 2.4% last week, marking its worst week since December.
The U.S. benchmark treasury yield started the week at 3.63% and ended the week at 3.74% while the two-year U.S. treasury yield started the week at 4.44% and ended the week at 4.50%. Such an uptick in rates caused a decline in Wall Street. Growth sectors like technology were hit harder.
Rising rate worries dampen the appeal of the stocks that rely on easy borrowing for superior growth. Hence, shares of high-growth technology companies remain in a tight spot in such a scenario. Moreover, earnings results were not satisfactory.
Earnings from 79.9% of the tech sector’s market capitalization that have reported results so far are down 20% from the same period last year on 4.2% lower revenues, with 65.1% beating EPS estimates and 67.4% beating revenue estimates. The earnings beat ratio is the lowest in the preceding 20 quarters, while the revenue surprise is also toward the lower end of the 5-year range. Overall, the sector is expected to report an earnings decline of 18.2%.
Apple Inc. (AAPL - Free Report) missed the Zacks Consensus Estimate for earnings for the first time since 2016. Intel (INTC - Free Report) also came up with weaker results and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers. Although Amazon (AMZN - Free Report) beat earnings and revenue estimates, it posted the least profitable holiday quarter since 2014.
Against this backdrop, below we highlight a few tech ETFs those were the least-hurt last week.
Best-Performing Tech ETFs of Last Week
Invesco DWA Technology Momentum ETF (PTF - Free Report) – Down 1.2%
The underlying Dorsey Wright Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Zacks Rank #1 (Strong Buy) ETF charges 60 bps in fees.
Invesco Dynamic Networking ETF – Down 1.3%
The underlying Dynamic Networking Intellidex Index is comprised of stocks of networking companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The Zacks Rank #1 ETF charges 63 bps in fees.
Technology Select Sector SPDR Fund (XLK - Free Report) – Down 1.4%
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The Zacks Rank #2 (Buy) charges 10 bps in fees.
Franklin Intelligent Machines ETF (IQM - Free Report) – Down 1.6%
The Franklin Intelligent Machines ETF seeks capital appreciation by investing in innovative companies furthering techniques that automate or enhance everyday tasks. The fund charges 50 bps in fees.
Defiance Quantum ETF (QTUM - Free Report) – Down 1.6%
The underlying BlueStar Quantum Computing and Machine Learning Index consists of a modified equal-weighted portfolio of the stock of companies whose products or services are predominantly tied to the development of quantum computing and machine learning technology. The fund charges 40 bps in fees.
iShares Global Tech ETF (IXN - Free Report) – Down 1.7%
The underlying S&P Global 1200 Information Technology Sector Index measures the performance of companies that are part of the information technology sector of the economy. The fund charges 40 bps in fees.