“It’s hard to believe it was ten years ago this month that the great tech bubble burst, jump-starting a bear market the likes of which nobody ever expected. Even more incredible is how the perception of – and tolerance of – the technology sector’s stocks can change so dramatically in a decade. There’s an investment opportunity buried in that reality though.  Leading up to 2000, the P/E ratios for many tech names were triple-digit-sized – and that’s assuming the company was profitable (profits weren’t even close to being a pre-requisite for ownership). The mindset was simply buy anything that ends in dot-com and ride the momentum created by the new economy. The concept of value was a joke. My how the tables have turned,” James Brumley Reports From Investopedia.

Brumley goes on to say, “Care to guess which sector actually saw the second-most upside earnings surprises last quarter, with 88.7% of its large cap stocks reporting upside surprises? For that matter, care to guess which sector boasts one of the lowest projected (five year) PEG ratios right now, with a score of 1.1 versus the market average of 1.4? Care to guess – with the exception of the financials’ skewed numbers – which sector saw the greatest revenue growth on a year-over-year basis last quarter, with an 8.8% improvement? In all three cases, the answer is technology - an answer that surprises most, and excites too few. If you’re worried that there’s some accounting trick in play here, or that the results of a few are skewing the bigger picture, don’t worry. The numbers are legitimate representations of what’s going on in the sector.”

“What’s going on here is simply the swing in the pendulum all the way over to the other side. Investors were burned by tech in the early 2000′s, and are now being excessively cautious on the sector. This is the old fear/greed duality of the market. It goes without saying that the next cycle will likely lead to excessive – perhaps dangerous – confidence in the technology sector again. Investors are quick to forget. But this pause represents a cyclical opportunity for investors who recognize it and start taking overweighted long-term positions in tech names. If you’re still not interested in shopping for individual stocks, this is one of those instances where an ETF like the iShares Technology ETF (NYSE:IYW) or the Technology SPDR ETF (NYSE:XLK) would actually work pretty well,” Brumley Reports.

See More Details: HERE

We have put together some details on the iShares Technology ETF (IYW) and the Technology SPDR ETF (XLK) including the top holdings in each ETF.

The investment (IYW) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Technology Index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in the underlying index but which BGFA believes will help the fund track underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. The fund is nondiversified.

TOP 10 HOLDINGS ( 64.49% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. AAPL 9.37 Cisco Systems, Inc. CSCO 6.97 Google Inc. GOOG 7.46 Hewlett-Packard Company Common HPQ 4.78 Intel Corporation INTC 4.79 International Business Machines IBM 8.71 Microsoft Corporation MSFT 12.07 Oracle Corporation ORCL 4.66 QUALCOMM Incorporated QCOM 3.85 Texas Instruments Incorporated TXN 1.83

The investment (XLK) seeks to correspond generally to the performance, before fees and expenses, of publicly traded equities of companies in the technology economic sector. The fund typically invests at least 95% of assets in companies of the technology sector. The fund’s sector includes companies from the following industries: Internet and IT services, software, computers, peripherals, electronics, semiconductor equipment, and a variety of telecommunication products. It is nondiversified.

TOP 10 HOLDINGS ( 62.87% OF TOTAL ASSETS)

Company Symbol % Assets Apple Inc. AAPL 8.3 AT&T Inc. T 7.23 Cisco Systems, Inc. CSCO 6.02 Google Inc. GOOG 6.53 Hewlett-Packard Company Common HPQ 4.43 Intel Corporation INTC 4.2 International Business Machines IBM 7.51 Microsoft Corporation MSFT 10.29 Oracle Corporation ORCL 4.22 Verizon Communications Inc. Com VZ 4.14

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IYW, XLK