Best Performing Tech ETFs & Stocks of May
Amid all political and geopolitical woes, the technology sector staged a nice comeback after taking a huge beating from a slew of negative news from some of its key companies. In fact, our Computer and Technology sector emerged out to be the top-performing sector in May, gaining more than 5%.
This is especially thanks to a deluge of upbeat earnings results that have restored confidence in the sector. In particular, the resurgence of FAAMNG stocks and the strength in chipmakers, especially after easing fears of trade war with China, propelled the stocks higher (read: Sector ETFs & Stocks to Surge As US-China Trade Fear Ebbs).
Further, the sector fundamentals have been encouraging as the fast-growing, cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, and artificial intelligence are acting as the key catalysts. Additionally, the twin tailwinds of Trump’s tax cuts and a rising interest rate scenario are also fueling growth. 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 34%, suggesting continued robust growth in the coming months (see: all the Technology ETFs here).
Given this, investors might want to tap the space with the top-performing technology ETFs and stocks of May. For them, we have highlighted five funds and stocks that have seem excellent choices to play the trend at least in the near term.
ETFs
ETFMG Video Game Tech ETF GAMR
This fund targets the global video game industry of the technology sector including game developers, console and chip manufacturers, and game retailers.
Zacks Rank: N/A
AUM: $118.4 million
Expense Ratio: 0.75%
May Return: 10.7%
ARK Innovation ETF ARKK
This actively managed fund offers exposure to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the genomic, industrial innovation or Web x.0.
Zacks Rank: NA
AUM: $876.7 million
Expense Ratio: 0.75%
May Return: 10.7%
PowerShares Dynamic Semiconductors Fund PSI
This product also targets chip stocks by evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value (read: 5 Reasons to Bet on the Rebound in Semiconductor ETFs).
Zacks Rank: #1 (Strong Buy)
AUM: $420.1 million
Expense Ratio: 0.63%
May Return: 10.6%
First Trust Nasdaq Semiconductor ETF FTXL
This fund offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index.
Zacks Rank: #1
AUM: $46.4 million
Expense Ratio: 0.60%
May Return: 9.6%
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: $12.9 million
Expense Ratio: 0.35%
May Return: 9.5%
Stocks
Turtle Beach Corporation HEAR
This California-based audio technology company provides various gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, and mobile and tablet devices under the Turtle Beach brand. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: #1
VGM Score: A
Market Cap: $234.4 million
May Return: 205.5%
Global Eagle Entertainment Inc. ENT
This California-based company offers content and connectivity services for the airline industry. It provides airlines with in-flight video content, e-commerce and information services.
Zacks Rank: #2 (Buy)
VGM Score: C
Market Cap: $211.2 million
May Return: 90.2%
DHI Group Inc. DHX
This New York-based company offers specialized websites, which focus on select professional communities.
Zacks Rank: #3
VGM Score: C
Market Cap: $121.5 million
May Return: 88%
The Trade Desk Inc. TTD
This California-based company is a provider of technology platform for advertising (read: 4 Best Performing Sector ETFs of May).
Zacks Rank: #1
VGM Score: F
Market Cap: $3.6 billion
May Return: 71.3%
Bilibili Inc. BILI
This New York-based company provides online entertainment platform primarily in China. It provides online videos, live broadcasting and mobile games.
Zacks Rank: #3
VGM Score: D
Market Cap: $4.6 billion
May Return: 62.5%
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Global Eagle Entertainment Inc. (ENT) : Free Stock Analysis Report
DHI Group, Inc. (DHX) : Free Stock Analysis Report
The Trade Desk Inc. (TTD) : Free Stock Analysis Report
Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
PWRSH-DYN SEMI (PSI): ETF Research Reports
ARK-INNOVATION (ARKK): ETF Research Reports
SPDR-SP INTRNT (XWEB): ETF Research Reports
PF-ISE ELEC GMG (GAMR): ETF Research Reports
FT-NDQ SEMICON (FTXL): ETF Research Reports
BILIBILI INC (BILI) : Free Stock Analysis Report
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