Michael Kahn from Barron’s reports “some analysts were touting technology stocks on the belief that they will beat current expectations. However, the charts are heavy with bearish technicals, suggesting such a promise may be empty. Given the Nasdaq’s performance since the March low, this seems to go against common sense. After all, the Nasdaq is up roughly 37% from that low point while the benchmark Standard & Poor’s 500 is up 31%.”
“The bulls who contend that the stock market has bottomed should find comfort in Nasdaq leadership, as technology is typically one of the first sectors out of the gate. However, I contend that while the Nasdaq is heavily weighted towards technology stocks, it was not tech that drove the Nasdaq’s performance since early March. To be sure, tech was quite strong over the past few months but the Sector Select SPDR technology ETF (XLK) actually lagged the Nasdaq. Its gain through Monday’s session was 29% – less than the Nasdaq and even less than that of the S&P 500,” Reports Kahn
“While other technology ETFs and indexes may show better results for tech, few, if any, beat the performance of the Nasdaq. Therefore, I can safely say that technology stocks have not quite lived up to the hype,” Reports Kahn.
We have included a list of the top ten holdings in this ETF “XLK”
|TOP 10 HOLDINGS ( 63.19% OF TOTAL ASSETS)|
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