This article was originally published on ETFTrends.com.
Stocks such as Apple (AAPL), Google parent Alphabet Inc. (GOOG), Facebook Inc. (FB) and Microsoft Corp. (MSFT) are pivotal to QQQ’s performance. Those names and others were taken to task during the October market swoon, but QQQ gained nearly 5% last week.
“The $63 billion fund, better known as simply QQQ, took in $458 million on Tuesday after nearly $2 billion fled the ETF over the four previous sessions, putting it on track to lose the most cash since January,” reports Bloomberg.
QQQ features exposure to a wide array of technology companies, including technology hardware, storage, and peripherals; software; diversified telecommunication services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; and wireless telecommunication services.
What's Next for Tech?
“U.S.-listed ETFs tracking shares of technology companies have seen more than $3.7 billion of outflows in November, putting them well on their way to the worst month since the beginning of 2016. Still, some traders spotted a buying opportunity when the selling finally eased,” according to Bloomberg.
Even with the pressure on Apple, the largest component in a slew of cap-weighted technology ETFs, some technical analysts see opportunity in the sector. Microsoft recently surpassed Apple as the largest U.S. company by market value.
“Tech stocks have been lagging recently with steep sell-offs in key names, including Apple, Facebook and Netflix (NFLX). Companies that just a few months ago were setting records have since lost hundreds of billions of dollars in market value amid concerns that the best days of growth are past,” according to Bloomberg.
For more news and strategy on the Technology market, visit our Technology category.
Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.
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