Back to top

Image: Bigstock

Tech ETFs Soaring to All-Time Highs

Read MoreHide Full Article

The technology sector is on fire once again after being badly beaten down in the last quarter. Hopes over a trade deal between the world’s two largest economies have been instilling confidence in the sector, though no deal has been finalized yet. Additionally, the Fed’s more dovish-than-expected view supported the rally.  

The Fed Chair Powell said that no further interest rate hikes this year are being forecast due to signs of softness in the U.S. economy. Additionally, the central bank stated that it would stop shrinking its $4-trillion balance sheet by the end of September.

Further, the sector’s long-term story remains intact with the emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence and machine. The deployment of 5G (fifth-generation) technology — the next wireless revolution — is creating further opportunities. The wave of mergers and acquisitions is also providing further impetus to the space (read: Best Sector of February and Its Top ETFs & Stocks).

While winners are spread across many corners of the tech space, we have highlighted seven tech ETFs that hit all-time highs in the last trading session. Any of the following funds could be excellent picks for investors seeking to benefit from the current trends:

iShares Expanded Tech-Software Sector ETF (IGV - Free Report) – New High Price: $214.69

This ETF provides exposure to the software segment of the broader U.S. technology space by tracking the S&P North American Technology-Software Index. Holding a basket of 90 securities, the fund charges 47 bps in annual fees and has AUM of $2.7 billion. Volume is good as it exchanges nearly 493,000 shares a day. IGV has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 10 Top-Ranked ETFs Leading the 10-Year Bull Run).

First Trust Cloud Computing ETF (SKYY - Free Report) – New High Price: $58.76

This fund provides exposure to 28 cloud computing securities by tracking the ISE Cloud Computing Index. It has amassed $2.1 billion in its asset base and sees a good volume of about 329,000 shares a day. It charges 60 bps in annual fees and a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Cloud Computing Hits New 52-Week High).

Invesco S&P 500 Equal Weight Technology ETF (RYT - Free Report) – New High Price: $214.69

This ETF offers equal-weight exposure to 68 tech firms by tracking the S&P 500 Equal Weight Index Information Technology Index. It has amassed $1.6 billion in its asset base while trades in moderate volume of around 104,000 shares. The fund charges 40 basis points in fees per year and has a Zacks ETF Rank #3 with a Medium risk outlook.

SPDR S&P Semiconductor ETF (XSD - Free Report) – New High Price: $82.11

This fund provides equal-weight exposure to 35 firms by tracking the S&P Semiconductor Select Industry Index. The fund has accumulated $301.1 million in AUM and charges 35 bps in fees per year. It trades in average daily volume of 115,000 shares and has a Zacks ETF Rank #3 with a High risk outlook (read: Will Semiconductor ETFs' Best Start to a Year Last Long?)

ETFMG Prime Cyber Security ETF (HACK - Free Report) – New High Price: $40.88

With AUM of $1.6 billion, this fund provides global exposure to the cybersecurity industry comprising companies that offer hardware, software, consulting and services to defend against cybercrime. It tracks the Prime Cyber Defense Index, holding 53 securities in its basket. The fund charges 60 bps in fees per year and sees good volume of 291,000 shares in hand per day (read: ETF Investing 2019: Best Ideas & Trends).

First Trust Technology AlphaDEX Fund (FXL - Free Report) – New High Price: $40.88

This fund offers exposure to the broad technology sector by using the AlphaDEX methodology. In total, it holds 92 securities in its basket with AUM of $2.2 billion. The ETF trades in good average daily volume of 333,000 shares and charges 63 bps in fees per year. It has a Zacks ETF Rank #1 with a Medium risk outlook.

Invesco DWA Technology Momentum ETF (PTF - Free Report) – New High Price: $69.52

This fund follows the Dorsey Wright Technology Technical Leaders Index and provides exposure to companies that show relative strength (momentum). Holding 36 stocks in the basket, PTF is illiquid and relatively unpopular with AUM of $145.1 million and average daily volume of 14,000 shares. It has a Zacks ETF Rank #2 with a High risk outlook.

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 >>