The Technology SPDR (ETF) (NYSE: XLK), the largest exchange-traded fund tracking the largest sector weight in the S&P 500, is off nearly 2 percent over the past month. With the Federal Reserve inching closer to raising interest rates, investors should not shun XLK and rival technology ETFs. Actually, it could be time to talk tech with sector ETFs.
Technology provides investors with protection and profit potential if and when the Federal Reserve gets around to increasing borrowing costs. Technology is a cyclical sector, so its durability against a backdrop of rising rates is not surprising; higher rates should signal the Fed's confidence in the sturdiness of the U.S. economy.
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/www.benzinga.com/analyst-ratings/analyst-color/15/12/6021344/time-for-tech-etfs-ahead-of-higher-interest-rates alt=Time For Tech ETFs Ahead Of Higher Interest Rates>Full story available on Benzinga.com
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