The NASDAQ 100 Pre-Market Indicator is up 15.3 to 15,273.82. The total Pre-Market volume is currently 34,804,588 shares traded.The following are the most active stocks for the pre-market session: ProShares UltraPro Short QQQ (SQQQ) is +0.06 at $18.67, with 2,370,681 shares trade
Stocks markets were subdued on Friday after prolonged pressure, with investors watching the contrasting fortunes of the dollar and yuan, and mulling central bank meetings and U.S. data on the horizon.
U.S. stock markets closed mixed on Thursday as market participants remained uncertain whether the Fed will opt for more interest rate hike this year or not. Moreover, a decision of the government of China also affected technology
U.S. stock index futures were subdued on Friday as investors awaited a fresh inflation reading next week after recent economic data stoked worries interest rates could remain higher for longer.
A new series of smartphones launched by China's Huawei Technologies has drawn global attention for containing technology that indicates the company has managed to overcome U.S. sanctions and could come back as a rival to Apple In late August, the company unveiled the Mate 60 and Mate 60 Pro, and on Friday launched two more smartphones, the Mate X5 which is a new version of its foldable phones, and the Mate 60 Pro+.
Would you like to improve your stock-picking chops by learning from the pros? You could wait for the next round of disclosures that institutional investors are required to make four times per year, or you could look at what Cathie Wood and the family of exchange-traded funds she
When many investors think of tech stocks, they picture growth stocks aggressively reinvesting profits to focus on growing as much as possible, as fast as possible. While that may be true for a lot of tech stocks, it's just one side of the coin. Plenty of tech stocks offer above-a
September S&P 500 futures (ESU23) are trending down -0.24% this morning after the S&P 500 and Nasdaq closed in the red on Thursday as technology stocks dropped on concerns over the outlook for Apple, while the latest U.S. jobless claims data stoked worries about sticky inflation.
Apple Inc's revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday.
Launched on 02/23/2007, the WisdomTree U.S. LargeCap ETF (EPS) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
The iShares MSCI ACWI Low Carbon Target ETF (CRBN) was launched on 12/08/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
Global shares steadied on Friday as the dollar headed for its longest winning streak since 2014 on the back of a buoyant U.S. economy, with investors expecting central banks to stand pat on rates over the coming two weeks.
European stocks edged higher on Friday, as investors snapped up battered luxury and technology shares after a plethora of concerns including the prospect of elevated U.S. interest rates and slowing European economy roiled sentiment this week.
Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban.
Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer.
Investors probably can't wait for the week to end, with
worries over China's curbs on iPhones and the dollar's
resurgence in the past few weeks casting a long shadow over the
markets.
China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further.
The tech sector is back in 2023, riding the excitement regarding AI and other technological advances to massive gains. The
Technology Select Sector SPDR ETF (
NYSEARCA:XLK)
, which invests in the technology sector of the S&P 500 (
SPX
), has returned a scintillating 42.6% year-to-date. But this type of stellar performance is nothing new for this top tech ETF, which has been rewarding its investors with excellent returns for many years. So, let’s take a look at this long-term winner that is still attractive.
Stellar Track Record
XLK has established itself as a consistent, long-term winner. How good has XLK’s performance been over the years?
As of the end of the most recent quarter, XLK put up an impressive annualized total return of 19.5% over the past three years. Zooming out to five years and 10 years, the fund has managed to return over 20% on an annualized basis over each time frame, with outstanding total annualized returns of 21.5% over the past five years and 20.7% over the past 10 years.
These returns are great on their own accord, but how do they stack up against the broader market over the long term? As of the end of the most recent quarter, the
Vanguard S&P 500 ETF (
NYSEARCA:VOO)
, a good proxy for the S&P 500, returned 14.6% on an annualized basis over the past three years. Over the past five years, it has returned 12.3% on an annualized basis, and over the past 10 years, it has posted an annualized return of 12.8%.
These are solid returns, but XLK’s returns over each of the three time frames are superior, putting it among one of the rare ETFs that can say it has decisively beaten the market over the long run.
A Cost-Effective Option
XLK has given investors a market-beating performance over the past decade, and it does so for a very reasonable price, with an expense ratio of just 0.10%. This means that an investor putting $10,000 into XLK today would pay just $10 in fees in year one. Assuming the ETF returns 5% per year going forward and the fee remains 0.10%, this same investor would pay a reasonable $128 in fees over the course of the next 10 years.
It's worth noting that XLK's expense ratio is significantly lower than that of the
Invesco QQQ Trust (
NASDAQ:QQQ)
, the largest and most popular tech-centric ETF, which charges a still-reasonable 0.20%.
XLK's Holdings
XLK sports 67 holdings, covering the technology sector of the S&P 500. Below, you’ll find an overview of
XLK’s top 10 holdings from TipRanks’ holdings tool.
Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (
NASDAQ:AAPL
) and Microsoft (
NASDAQ:MSFT
), combine to make up more than 44%. This isn’t necessarily a bad thing, but investors should be aware that XLK has a lot of exposure to these two stocks.
Part of the reason that XLK has outperformed the market over the years is that its top holdings include some of the most innovative companies in the U.S. market (not to mention globally), creating the products, technologies, and applications that have revolutionized the way many people work and live their day-to-day lives.
This is true whether it’s consumer-facing products from the likes of Apple and Microsoft, enterprise-facing products from Adobe (
NASDAQ:ADBE
), Salesforce (
NYSE:CRM
) and Oracle (
NYSE:ORCL
), or the semiconductor companies that make many of these applications possible, like Nivida (
NASDAQ:NVDA
), Broadcom (
NASDAQ:AVGO
) and Advanced Micro Devices (
NASDAQ:AMD
).
You may notice that several big names are conspicuously absent from XLK’s portfolio. The likes of Amazon (
NASDAQ:AMZN
), Meta Platforms (
NASDAQ:META
), Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
), and Tesla (
NASDAQ:TSLA
), are not part of XLK’s portfolio.
This is because while we often think of them as tech stocks, the S&P index classifies Meta Platforms and Alphabet within communications services, and they can be found within the
Communication Services Select Sector SPDR Fund (
NYSEARCA:XLC)
.
Meanwhile, Amazon and Tesla are classified as consumer discretionary companies and can be found within the
Consumer Discretionary Select Sector SDPR Fund (
NYSEARCA:XLY)
, where they combine to make up more than 40% of the fund’s holdings.
An Outperform Smart Score Rating
TipRanks’ Smart Score system rates XLK’s top holdings highly. The
Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. As you can see in the table above, an impressive eight out of XLK’s top 10 holdings have Outperform-equivalent Smart Scores of 8 or higher. XLK itself features an Outperform-equivalent ETF Smart Score of 9.
Is XLK Stock a Buy, According to Analysts?
Turning to Wall Street, XLK earns a Moderate Buy consensus rating based on 55 Buys, 12 Holds, and no Sell ratings assigned in the past three months. The
average XLK stock price target of $199.81 implies 15.9% upside potential.
Looking Ahead
XLK has put up a banner performance in 2023. Still, this outstanding performance is nothing new -- it is one of the rare ETFs that has soundly beaten the broader market over a long period of time. The ETF enjoys favorable views from analysts and an excellent rating from TipRanks’ Smart Score System.
However, investors should be aware that while XLK owns many of today’s tech companies, it doesn’t own some of the archetypical technology stocks like Meta Platforms or Amazon, as these are grouped into different sectors by the S&P. Nevertheless, XLK’s investor-friendly expense ratio, impeccable track record, and strong portfolio of top technology companies make it look like a solid long-term bet.
Disclosure
The shares of several major Apple suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets.
Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment.