Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Top Ranked Tech ETFs for Long Term Investors

 

Tech sector is the best performer year-to-date, with a gain of 31.6%--more than double of S&P 500’s rise of 15.7%.

Some of the big names in the industry including Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT) and Intel (INTC) delivered better than expected Q3 results and provided upbeat guidance. Tech giants are becoming bigger and better since they are just very good at what they do. And, due to their high global revenue exposure, these companies are prospering with the improving global economy.

Most tech companies, specially the mature ones, have huge piles of cash on their balance sheets and have been returning a lot of cash to their shareholders via dividends and repurchases. These may increase if we see a repatriation tax holiday. Also, with so much cash available to them, they will be less vulnerable to the rise in interest rates.

The world is becoming increasingly digital and the role of technology in our daily lives continues to grow. There are a number of real growth drivers for tech companies including e-commerce, cloud computing, data storage, mobile, the Internet of Things (IoT) and Artificial Intelligence (AI),

M&A activity in the space has remained strong and could pick up further momentum if tax reform bill passes. Last week, Broadcom made an unsolicited offer to buy Qualcomm for $105 billion, which would be the biggest technology acquisition ever, if completed.

In this week’s video, we are highlighting two ultra-popular, very cheap ETFs that provide broad exposure to technology segment of the US stock market. These are excellent for long-term investors.

To learn more about the SPDR Technology Select Sector SPDR Fund (XLK) and the Vanguard Information Technology ETF  (VGT), please watch the short video above.


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 >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Alphabet Inc. (GOOGL): Free Stock Analysis Report
 
Apple Inc. (AAPL): Free Stock Analysis Report
 
Microsoft Corporation (MSFT): Free Stock Analysis Report
 
SPDR-TECH SELS (XLK): ETF Research Reports
 
VIPERS-INFO TEC (VGT): ETF Research Reports
 
Intel Corporation (INTC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report