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5 Niche Tech ETFs Hitting All-Time Highs

By Zacks Investment ResearchStock MarketsMay 09, 2018 10:15PM ET
www.investing.com/analysis/5-niche-tech-etfs-hitting-alltime-highs-200315094
5 Niche Tech ETFs Hitting All-Time Highs
By Zacks Investment Research   |  May 09, 2018 10:15PM ET
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After two tumultuous months, the technology sector is once again at the heart of the market rally given a deluge of upbeat earnings results. This is especially true as the ultra-popular Select Sector SPDR Technology ETF XLK has gained 5.1% in a month versus gains of 2.2% for SPDR S&P 500 (AX:SPY) and 4.7% for PowerShares QQQ QQQ.

Total earnings from 84.3% of the sector’s market cap in the S&P 500 index are up 29.4% on 12.1% higher revenues, with a 91.5% companies beating both earnings and revenue estimates. While the earnings beat ratio and growth rates are tracking above historical periods, revenue surprise is lower than Q1.

The six key technology stocks, viz., FAAMNG — Facebook (NASDAQ:FB) , Apple (NASDAQ:AAPL) , Amazon.com (NASDAQ:AMZN) , Microsoft (NASDAQ:MSFT) , Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOGL) — which slipped into deep correction territory in late March, strongly restored positive sentiments with better-than-expected results and optimism for future growth. In particular, Apple led the impressive surge following upbeat results and Warren Buffett's decision to increase his stake in the firm (read: 6 Top-Ranked ETFs With Apple in Basket for Juicy Returns).

Additionally, a string of reports from other tech players like Advanced Micro Devices (NASDAQ:AMD) , Intel (NASDAQ:INTC) INTC, Visa V and PayPal (NASDAQ:PYPL) also fueled the rally and instilled confidence in the sector.

Coming to sector fundamentals, the twin tailwinds of Trump’s tax cuts and a rising interest rate scenario as well as the emergence of cutting-edge technology are acting as catalysts. This is because tech titans hoard huge cash overseas and are poised to benefit the most from reduced tax rates. These companies are also sitting on a huge cash pile and in a position to increase payouts to their shareholders.

If these aren’t enough, the sector has a solid Zacks Rank in the top 44%, suggesting robust growth prospects in the coming months (see: all the Technology ETFs here).

Given this, many tech ETFs have been hitting all-time highs in recent trading sessions, easily crushing the broad market by a wide margin in the past one month. Below, we have highlighted five of them and could be excellent plays to ride out the bullish trend in the tech space.

Investors should note that these ETFs might be unpopular choices due to lower AUM and average daily volume but focuses on ‘niche strategies’ aimed at a single industry or a theme.

SPDR S&P Internet ETF XWEB

This product targets the Internet corner of the broad tech space with equal-weight exposure.

Zacks Rank: #3 (Hold)
AUM: $4 million
Average Daily Volume (approx): 1,000 shares
Expense Ratio: 0.35%
One-Month Return: 8.8%
All-Time High Price: $82.53

Global X FinTech ETF FINX

This product invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions.

Zacks Rank: NA
AUM: $121.6 million
Average Daily Volume (approx): 66,000 shares
Expense Ratio: 0.68%
One-Month Return: 7.5%
All-Time High Price: $25.04

iShares North American Tech-Software ETF (SN:IGV)

This ETF provides exposure to the software segment of the broader U.S. technology space (read: Tech ETFs to Lead Again On Power-Packed Earnings).

Zacks Rank: #2 (Buy)
AUM: $1.6 billion
Average Daily Volume (approx): 187,000 shares
Expense Ratio: 0.48%
One-Month Return: 7.3%
All-Time High Price: $183.98

PowerShares Dynamic Software Portfolio PSJ

This product also targets the software corner of the broad technology space.

Zacks Rank: #2
AUM: $159.2 million
Average Daily Volume (approx): 13,000 shares
Expense Ratio: 0.63%
One-Month Return: 7.2%
All-Time High Price: $75.02

First Trust Cloud Computing ETF SKYY

This fund provides exposure to cloud computing securities (read: ETFs to Buy on Netflix's Blockbuster Q1 Earnings).

Zacks Rank: #3
AUM: $1.5 billion
Average Daily Volume (approx): 269,000 shares
Expense Ratio: 0.60%
One-Month Return: 6.9%
All-Time High Price: $52.32

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 >>

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Netflix, Inc. (NFLX): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

SPDR-TECH SELS (XLK): ETF Research Reports

NASDAQ-100 SHRS (QQQ): ETF Research Reports

SPDR-SP 500 TR (SPY (NYSE:SPY)): ETF Research Reports

ISHARS-NA TEC-S (IGV): ETF Research Reports

SPDR-SP INTRNT (XWEB): ETF Research Reports

FT-CLOUD COMPUT (SKYY): ETF Research Reports

Original post

Zacks Investment Research

5 Niche Tech ETFs Hitting All-Time Highs
 

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5 Niche Tech ETFs Hitting All-Time Highs

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