The rocky start to 2016 in the major indices has many ETF investors on edge. Some may be looking at the volatility as a buying opportunity, while others are likely heading for the stability of cash or other safe haven assets. No matter what your short-term outlook is, taking note of the price action in leadership sectors can help provide enhanced perspective on the market.
One sector that has been a perennial leader in price ascension and fundamental innovation over the last several years is technology stocks. The overwhelmingly favorite benchmark for this group is the Technology SPDR (ETF) (NYSEARCA:XLK), which contains 76 large-cap technology companies. Household names such as Apple Inc. (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) and Microsoft Corporation (NASDAQ: MSFT) are just some of the top holdings in this ETF.
XLK has nearly $13 billion in total assets, charges an expense ratio of 0.14% and is constructed with a market-cap weighted focus. This means that the largest companies make up the majority of the underlying assets and smaller stocks are given a proportionally reduced ...
/www.benzinga.com/general/education/16/01/6136158/a-technical-look-at-technology-etfs alt=A Technical Look At Technology ETFs>Full story available on Benzinga.com
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