|Bid||37.39 x 2200|
|Ask||38.12 x 1800|
|Day's Range||37.38 - 37.66|
|52 Week Range||31.08 - 40.98|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.10|
|Expense Ratio (net)||0.50%|
Tech companies are at maximum risk in the trade war. Naturally, all tech ETFs witness a bloodbath on May 13, among which, the following funds lost the least.
Once again, the technology sector and tech ETFs are hot in 2019. At the beginning of May, the tech-heavy Nasdaq-100 and S&P 500 Technology indexes were up 22.70% and 27.10%, respectively, year-to-date.Interestingly, tech ETFs are performing well even against the backdrop of declining net profit margins."Ten of the 11 sectors are reporting a year-over-year decline in their net profit margins in Q1 2019, led by the Communication Services (11.5% vs. 13.6%), Energy (4.4% vs. 6.2%), and Information Technology (20.7% vs. 22.3%) sectors," said FactSet in a recent note.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately for tech ETFs, the group could be supported by a familiar face: Apple (NASDAQ:AAPL). Apple, often one of the largest holdings in a slew of tech ETFs, recently reported blow-out fiscal second-quarter results. Importantly, the company forecast fiscal third-quarter revenue of $52.5 billion to $54.5 billion, boosted its dividend, added $75 billion to its repurchase program and forecast a gross margin of 37% to 38% for the current quarter. * 10 Vice Stocks to Spice Up Your Portfolio With the growth factor still largely in favor, investors may be able to find more upside through the rest of 2019 with some of the following tech ETFs. Fidelity MSCI Information Tech ETF (FTEC)Source: Shutterstock Expense ratio: 0.0840% per year, or $8.40 on a $10,000 investment.Tech ETFs can be more volatile than some other sector funds, but there is strong evidence confirming long-term investors are rewarded by sticking with tech. And if you're going to hold a tech ETF for the long haul, you ought to do that in cost-effective fashion. The Fidelity MSCI Information Tech ETF (NYSEARCA:FTEC) is one way of accomplishing that objective as it's the cheapest tech ETF on the market today.Home to 308 stocks, FTEC is a basic and broad tech ETF. The fund is cap-weighted, so heavyweights, such as Apple and Microsoft (NASDAQ:MSFT) dominate the fund. Those two stocks combine for nearly 31% of FTEC's weight. None of the fund's other holdings command weights north of 3.55%. Frugal investors get another benefit with FTEC: they can trade the tech ETF commission-free on Fidelity's platform.FTEC is up nearly 28% year-to-date and resides near all-time highs, but Microsoft could soon provide this tech ETF with another boost. Next week, Microsoft holds a meeting in Seattle and analysts are expecting some important commentary regarding the company's booming cloud business.Oppenheimer analyst Timothy Horan "sees Microsoft's heavy investments in artificial intelligence and the Internet of Things as important factors that could create demand for cloud-computing capacity over the next decade. Sales at the company's Azure cloud-computing segment soared 73% year over year in the fiscal third quarter," reports Barron's. First Trust NASDAQ Technology Dividend Index Fund (TDIV)Source: Shutterstock Expense ratio: 0.50%As noted above, Apple recently boosted its dividend. Microsoft has been a stout dividend grower in its own right in recent years. In other words, there are plenty of opportunities for dividend growth investors in the technology sector and the First Trust NASDAQ Technology Dividend Index Fund (NASDAAQ:TDIV) is the tech ETF dedicated to that theme."Tech giants spent a combined $50 billion on dividends last year. Dividend growth was one percentage point higher than the previous year, but smaller than the acceleration in 2016," according to Bloomberg. * 7 Energy Stocks to Buy to Light Up Your Portfolio TDIV does not have a dividend growth qualification per say, but the tech ETF requires components to have a dividend yield of at least 0.50% and to have paid a dividend over the past year while excluding companies that cut or suspended payouts. This $999.3 million tech ETF is up nearly 21% year-to-date. Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE)Source: Shutterstock Expense ratio: 0.35%The widely followed Nasdaq-100 Index is not a dedicated technology benchmark, but it is pretty close. Investors looking for reduced single-stock risk while still getting access to the Nasdaq-100 may want to consider an equal-weight tech ETF, such as the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEARCA:QQQE).QQQE follows the NASDAQ-100 Equal Weighted TR Index, the equal-weight equivalent of the Nasdaq-100 Index. None of QQQE's holdings exceed weights of 1%. That's right: 1% is the weight this tech ETF assigns to the likes of Apple and Microsoft.This data point may surprise some tech investors: QQQE is actually trading slightly ahead of the cap-weighted Nasdaq-100 this year. While QQQE does not always outpace the cap-weighted Nasdaq-100, it is worth nothing the equal-weight tech ETF's maximum drawdown over the past three years was significantly lower than that of the cap-weighted benchmark. Global X Cloud Computing ETF (CLOU)Source: Shutterstock Expense ratio: 0.68%Having debuted just last month, the Global X Cloud Computing ETF (NASDAQ:CLOU) is the newest tech ETF highlighted here. It is also the second dedicated cloud computing ETF in the U.S. CLOU, which is actually pricier than the established fund it competes against, tracks the Indxx Global Cloud Computing Index.However, CLOU does not allocate more than 5.48% of its weight to any of its holdings and the overlap between CLOU and the competing fund is just 17% by weight, meaning this new tech ETF can potentially deliver significantly different returns than its older rival. With cloud computing, investors are tapping a fast-growing niche. * 3 Earnings Reports to Watch Next Week "The global cloud computing market is estimated to be worth well-over $300 billion by 2022, up from about $188 billion today and growing at a compound annual growth rate (CAGR) of 14.6%," according to Global X research. "And while cloud computing is primarily a business innovation, it has had massive implications for how products and services are delivered to customers, from social media and video streaming to education platforms and gaming." VanEck Vectors Semiconductor ETF (SMH)Source: Shutterstock Expense ratio: 0.35%The strength of semiconductor stocks has been a major boon for tech ETFs this year. Just look at the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH), which is up 32.17% year-to-date. Semiconductor companies are highly cyclical and with the group up so much to start to 2019, some market observers have concerns about the rally's veracity.There might be something to that prognosis simply because global semiconductor demand hit a record high last year, meaning 2019 comp's will be tough for the industry to top. Additionally, some analysts see global chip demand as still in a downturn, one that may not be broken until next year, given historical downturn trends in the semiconductor space.The good news for tech ETFs and dedicated semiconductor plays, such as SMH, is that emerging technologies, such as 5G and artificial intelligence, are expected to bolster chip demand.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Energy Stocks to Buy to Light Up Your Portfolio * 10 Vice Stocks to Spice Up Your Portfolio * 7 of the Best ETFs to Buy for a Slowing Economy Compare Brokers The post 5 Tech ETFs to Plug In to Big Profits appeared first on InvestorPlace.
Historically, the technology sector has not been viewed as fertile territory for dividend investors, but in recent years, that view has been altered for the better as technology has been one of the primary drivers of S&P 500 dividend growth in recent years. Investors can use the First Trust NASDAQ Technology Dividend Index Fund (TDIV) to play that theme. For years, technology was the not first sector investors thought of when they thought of dividends.
IBM has been on an uptrend so far this year, gaining 26.9%, and has outperformed the industry's average growth of 26% by a thin margin. The positive trend might continue if IBM beats earnings estimates.
The ongoing week is dominated by many political events of global importance amid a series of central bank meetings. Investors can rely on these ETFs to safeguard their interests from any upheavals.
In 2018, U.S. dividend growth remained solid, although some dividend exchange traded funds (ETFs) were challenged by the Federal Reserve's four interest rate hikes. Expectations are in place that the Fed will slow its pace of rate hikes this year or possibly not raise rates at all. Joe Smith, deputy chief investment officer (CIO), at CLS Investments ($9.2 billion AUM), recently discussed his firm's approach to dividend strategies with ETF Trends.
The technology sector -- the S&P 500's largest sector weight -- is rebounding at the start of the new year following a lackluster showing in 2018. As of Friday, Jan. 25, the Technology Select Sector SPDR (NYSEARCA:XLK) and the Invesco QQQ (NASDAQ:QQQ), were up an average of 6.75% year-to-date after losing an average of 0.90% last year. Still, an array of factors could become headwinds for the technology sector, but earnings growth has been steady. As of Jan. 25, 88% of S&P 500 technology companies delivered quarterly results that beat expectations. On the other hand, the sector, to this point, accounts for a small percentage of positive fourth-quarter earnings surprises. Another metric indicates the technology sector, a cyclical, is showing some signs of slowing down. InvestorPlace - Stock Market News, Stock Advice & Trading Tips "As of January 9 the blended revenue growth rate, a measure that includes analyst estimates and reported results, is just 1.7% year over year, according to Reuters data," reports Forbes. "That's lagging every other sector except for utilities." * 10 Stocks to Sell in February In the current environment, investors considering technology exchange-traded funds (ETFs) ought to be selective. Here are some of the best tech ETFs for investors to consider right now. ### First Trust NASDAQ Technology Dividend Index Fund (TDIV) Expense Ratio: 0.50%, or $50 annually per $10,000 invested In recent years, the technology sector has become an increasingly prominent part of the domestic dividend picture. While the Technology Select Sector Index yields just 1.59%, the good news on that front is that the sector's yield implies ample room for dividend growth. Enter the First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV), one of the best tech ETFs for dividend seekers. TDIV targets the NASDAQ Technology Dividend Index and holds nearly 100 stocks. This tech ETF does not have a dividend increase requirement, but its underlying index does mandate the existence of a dividend, a yield of at least 0.50% and no negative dividend actions in the past year. International Business Machines (NYSE:IBM), Microsoft (NASDAQ:MSFT) and Cisco Systems (NASDAQ:CSCO) combine for almost a quarter of TDIV's weight. Those stocks have been dependable dividend growers and buyers of their own shares in recent years. Speaking of those themes, dividends and buybacks this year should at least be in line with last year's tallies. "PMorgan estimates that S&P 500 companies will spend $800 billion on stock buybacks and $500 billion on dividends in 2019, in line with last year's totals, according to Bloomberg," notes First Trust. ### Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) Expense Ratio: 0.35% While many investors think the best tech ETFs are cap-weighted funds, such as the aforementioned QQQ and XLK, that thesis was dealt a harsh blow earlier this month when Apple (NASDAQ: AAPL) delivered an earnings warning that sent the iPad maker tumbling. "We had sort of a collection of items going on. Some that are macroeconomic and some that are Apple specific," said Apple CEO Tim Cook in an interview with CNBC. "And we're not going to sit around waiting for the macro to change. I hope that it does and I'm actually optimistic, but we are going to focus really deeply on the things we can control." Put simply, the Direxion NASDAQ-100 Equal Weighted Index Shares (NYSEARCA:QQQE) is one of the best tech ETFs for investors looking to avoid the concentration risk associated with many cap-weighted tech funds. In fact, QQQE is up nearly 10% YTD, easily outpacing the cap-weighted QQQ. * 7 Stocks to Buy With High ESG Momentum Each of QQQE's holdings has a weight of 1%. ### Invesco S&P 500 Equal Weight Technology ETF (RYT) Expense Ratio: 0.40% Keeping with the theme of equal-weight funds, the Invesco S&P 500 Equal Weight Technology ETF (NYSEARCA:RYT) is a different animal from the aforementioned QQQE because RYT focuses exclusively on tech stocks. The $1.48 billion RYT, one of the largest equal-weight ETFs on the market, follows the S&P 500 Equal Weight Information Technology Index. This is one of the best tech ETFs for investors looking for dedicated tech exposure without depending on Apple and Microsoft as primary drivers of the fund's returns. In fact, those stocks are not even top 10 holdings in RYT. RYT is also one of the best tech ETFs for investors looking to reduce dependence on large-cap stocks. While the ETF's 68 holdings have an average market value of $90.33 billion, nearly 40% of the fund's holdings are classified as mid caps. ### BUZZ US Sentiment Leaders ETF (BUZ) Expense Ratio: 0.75% The BUZZ US Sentiment Leaders ETF (NYSEARCA:BUZ) is another one of the best tech ETFs for investors that do not want a dedicated tech fund. BUZ has well-documented advantages that can help investors tap into social sentiment investing, something pros have been doing for years. BUZ tracks the BUZZ NextGen AI US Sentiment Leaders Index and the aim of that index is to identify the 75 stocks with the most bullish social sentiment readings. That means BUZ is sector agnostic, but it is common for one of the best tech ETFs to have a weight to technology stocks of 35% to 40% or more. At the end of the third quarter, BUZ's tech weight was more than 39% and six of its top 10 holdings were tech stocks. * 7 of the Best Sector Funds for 2019 After outperforming some well-known growth and momentum funds last year, BUZ is already one of 2019's best tech ETFs with a gain of nearly 10%. ### ARK Innovation ETF (ARKK) Expense Ratio: 0.75% As is the case with some of the other funds highlighted here, the ARK Innovation ETF (NYSEARCA:ARKK) is not a dedicated tech ETF, but it is one of the best tech ETFs. "Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (''Genomic Revolution"), industrial innovation in energy, automation and manufacturing (''Industrial Innovation''), the increased use of shared technology, infrastructure and services (''Next Generation Internet'), and technologies that make financial services more efficient (''Fintech Innovation'')," according to the issuer. ARKK, which usually holds 35 to 55 stocks, currently allocates about 63% of its combined weight to the healthcare and technology sectors. Tech exposures include cloud computing, Internet of Things (IoT), big data and autonomous vehicles. As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy for the Rest of the Year * 10 Best Consumer Stocks to Buy in 2019 * 10 Triple-A Stocks to Buy in February Compare Brokers The post 5 Best Tech ETFs to Buy Now appeared first on InvestorPlace.
IBM posted its first annual revenue growth since 2011, reflecting a shift toward faster-growing segments. Investors could tap the opportunity with these ETFs.
Solid results and an encouraging outlook pushed shares of Oracle up. ETFs with the highest allocation to this software giant look to be big movers this week.
Traditional income products like CDs, money market funds and even bonds are still paying pitiful amounts of interest to savers. The explosion in ETFs has produced plenty of income and dividend focus funds. In fact, ETFdb.com tags more than 180 funds as “Dividend ETFs.” That’s a lot of different funds and ways to get your income fix.
Domestic dividend funds are still growing. Thanks in part to significant amounts of cash repatriated back to the U.S. following the recent tax cuts, S&P 500 member firms are boosting payouts. “From the start of the year through May 18, 187 companies have either increased or initiated a dividend, the second-highest number through the first five months of the year since 2011,” reports CNBC, citing S&P Dow Jones Indices.
Shares of Oracle Corporation (NYSE:ORCL) haven’t been trading too well, tumbling some 5% on June 14. While ORCL stock started to recover as the week ended, some investors have to be wondering if this is a buying opportunity. JPMorgan analyst Mark Murphy downgraded the stock to neutral from overweight and cut his price target to $53 from $55.