This year’s broad market sales have hit high-flying technology stocks particularly hard. These companies, once Wall Street’s pandemic darlings, are now hitting several macronegative factors as high and rising particularly hard.
For example, it has lost over 25% in the last year, while it has lost about 31% in the same period.
After five months of steady decline, there are now some investors who think that is enough.
In today’s article, we present three exchange traded funds (ETFs) that may appeal to unconventional investors willing to push the buy button on technology stocks.
1. Technology Select Sector SPDR Fund
- Current rate: $ 140.00
- 52-week range: $ 127.04 – $ 177.04
- Yield: 0.81%
- Cost percentage: 0.13% pa
The first fund we examine here is this one Technology Select Sector SPDR® Fund (NYSE :). It invests in companies that provide software, hardware, warehousing solutions and communications equipment. He also invests in the Fund was launched in December 1998.
XLK follows the Technology Select Sector Index and currently holds 76 stocks. About a third of the portfolio is invested in software companies. It is followed by technology hardware, memory and peripherals (23.20%), semiconductor and semiconductor devices (20.52%) and IT service companies (17.27%).
The portfolio’s top 10 stocks account for nearly two-thirds of the $ 41.8 billion in net assets. Microsoft (NASDAQ 🙂 and Apple (NASDAQ 🙂 are the largest holdings with almost 22% each. Other top names on the participant list are Visa (SNEEZE:), Mastercard (SNEEZE:), NVIDIA (NASDAQ :), Broadcom (NASDAQ 🙂 and Adobe (NASDAQ :).
XLK peaked at the end of 2021. Year to date (YTD), however, the ETF has fallen 19.49%.
The ratio between price and earnings (P / E) and price-to-book (P / B) is 22.30x and 8.08x, respectively. Technology leaders looking for high exposure to MSFT and AAPL stocks should keep this fund on their radar.
2. Invesco PHLX Semiconductor ETF
- Current course: 24.11
- 52-week range: $ 21.72 – $ 32.01
- Yield: 1.0%
- Cost percentage: 0.19% pa
Recent research from McKinsey shows that the “compound annual growth rate of the chip industry (ETR 🙂 may average 6 to 8 percent per year until 2030.” Meanwhile, most analysts agree that the supply shortage holding back the semiconductor sector should ease in the coming months.
Nevertheless, the PHLX Semiconductor Sector Index has fallen over 21% this year. So our next fund, the Invesco PHLX Semiconductor ETF (NASDAQ 🙂 may be of interest to investors looking for cheap access to chip stocks. The fund was launched in June 2021 with net assets of USD 62.8 million.
The SOXQ currently contains 30 shares. More than 40% of the portfolio is invested in top 10 stocks. These include i.a. Broadcom, intel (NASDAQ :), Advanced micro-devices (NASDAQ :), Qualcomm (NASDAQ :), NVIDIA, KLA Tencor (NASDAQ 🙂 and analog devices (NASDAQ :).
With most long-term portfolios likely to benefit from exposure to the leading chip stocks, the SOXQ investor deserves attention. So far this year, SOXQ has fallen 22.9%. The ratio between price and earnings (P / E) and price-to-book (P / B) is 17.61x and 5.88x, respectively.
Global X Robotics & Artificial Intelligence ETF
- Current Price: $ 23.79
- 52 week range: $ 20.88 – $ 39.99
- Yield: 0.25%
- Cost percentage: 0.68% pa
Innovation has been a major driver of growth on Wall Street over the past decade. The indicators indicate:
“The size of the global market for artificial intelligence (AI) robots is expected to reach $ 37.9 billion by 2027.”
Such an increase would correspond to a compound annual growth rate (CAGR) of over 32%.
Our third technology fund is Global X Robotics & Artificial Intelligence ETF (NASDAQ :), which invests in global companies at the heart of robotics and artificial intelligence (AI) innovation and development. The fund was launched in September 2016.
The BOTZ currently holds 38 shares. Among sectors, industries (NYSE 🙂 top the list with 44.3%, followed by information technology (38.7%), healthcare (11.4%) and consumer goods (2.6%).
The portfolio’s top ten stocks account for nearly two-thirds of the $ 1.6 billion in net assets. This includes NVIDIAthe robotics and automation business FIG (SIX 🙂 (NYSE :), the Japanese electronics and automation group Keyence (OTC :), a leader in robotic surgery intuitive surgical (NASDAQ 🙂 as well as the Japanese company Fanuc (OTC :), which focuses on factory automation machines (FA).
BOTZ has lost a third of its value since January. The ratio between price and earnings (P / E) and price-to-book (P / B) is 35.49x and 4.10x, respectively. Despite a decline of over 33% this year, we believe this theme fund could fit into growth portfolios.