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Top Ranked Tech ETFs for Long Term Investors

Tech sector is the best performer year-to-date, with a gain of 31.6%–more than double of S&P 500’s rise of 15.7%.

Some of the big names in the industry including Apple Inc. (NASDAQ:AAPL), Alphabet Inc (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) delivered better than expected Q3 results and provided upbeat guidance. Tech giants are becoming bigger and better since they are just very good at what they do. And, due to their high global revenue exposure, these companies are prospering with the improving global economy.

Most tech companies, specially the mature ones, have huge piles of cash on their balance sheets and have been returning a lot of cash to their shareholders via dividends and repurchases. These may increase if we see a repatriation tax holiday. Also, with so much cash available to them, they will be less vulnerable to the rise in interest rates.

The world is becoming increasingly digital and the role of technology in our daily lives continues to grow. There are a number of real growth drivers for tech companies including e-commerce, cloud computing, data storage, mobile, the Internet of Things (IoT) and Artificial Intelligence (AI),

M&A activity in the space has remained strong and could pick up further momentum if tax reform bill passes. Last week, Broadcom made an unsolicited offer to buy Qualcomm for $105 billion, which would be the biggest technology acquisition ever, if completed.

In this week’s video, we are highlighting two ultra-popular, very cheap ETFs that provide broad exposure to technology segment of the US stock market. These are excellent for long-term investors.

To learn more about the SPDR Technology Select Sector SPDR Fund (NYSEARCA:XLK) and the Vanguard Information Technology ETF (NYSEARCA:VGT), please watch the short video above.

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