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Asset Class: Technology Sector
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Oldest ETF back tested: The Technology Select Sector SPDR® Fund (XLK)
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Long-Term Performance: 6.80% CAGR
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S&P 500 Performance: 6.30% CAGR
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Back test timeframe: January 1999 – June 2020
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Number of ETFs available in this asset class: 70
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Number of ETFs in this asset class that are 10-years old or older: 20
XLK vs SPY: January 1999 – June 2020
XLK vs SPY: December 22, 1998 – June 30, 2020
The Deep Value ETF Accumulator rankings for the 20 oldest Technology sector ETFs:
The 4 top ranked Technology sector ETFs head-to-head comparisons:
PNQI vs FDN vs PSJ vs IGV: July 2008 – June 2020
PNQI vs FDN vs PSJ vs IGV: June 13, 2008 – June 30, 2020
Stated objectives of 4 top ranked Technology sector ETFs:
PNQI – The Invesco NASDAQ Internet ETF (Fund) is based on the NASDAQ Internet Index® (Index). The Fund will normally invest at least 90% of its total assets securities that comprise the Index. The Index is designed to track the performance of the largest and most liquid US-listed companies engaged in internet-related businesses and that are listed on one of the major US stock exchanges. The Underlying Index employs a modified market capitalization-weighted methodology based on the market capitalization ranking of the Underlying Index securities. The Fund and the Index are rebalanced and reconstituted quarterly.
FDN – The First Trust Dow Jones Internet Index Fund is an exchange-traded index fund. The Fund seeks investment results that correspond generally to the price and yield , before the Fund’s fees and expenses, of an equity index called the Dow Jones Internet Composite IndexSM. The Dow Jones Internet Composite IndexSM, is a float-adjusted market capitalization weighted index designed to represent the largest and most actively traded stocks of U.S. companies in the Internet industry. To be eligible for the Dow Jones Internet Composite IndexSM, a stock must be listed on the NYSE, NYSE MKT or Nasdaq stock exchange and meet the following criteria: Generate a majority of sales/revenues from the Internet. Minimum trading history of three months. Minimum three-month average float-adjusted market capitalization of $100 million. Eligible stocks are ranked first by three-month average float-adjusted market capitalization and then by three-month average share volume. A final rank is calculated based on an equally weighted average of the market cap and volume rankings. Companies are sorted by final rank and 40 companies are selected, consisting of 15 classified as Internet Commerce and 25 classified as Internet Services. The index is weighted by float-adjusted market capitalization. The weight of any individual security is restricted to 10% and the aggregate weight of individual securities with weights of 4.5% or more is restricted to 45%. The index is rebalanced quarterly.
PSJ – The Invesco Dynamic Software ETF (Fund) is based on the Dynamic Software Intellidexâ„ Index (Intellidex Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Intellidex Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Underlying Intellidex Index is comprised of common stocks of 30 US software companies. These are companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. The Fund and the Index are rebalanced and reconstituted quarterly in February, May, August and November.
IGV – The iShares Expanded Tech-Software Sector ETF seeks to track the investment results of an index composed of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries. Targeted exposure to software companies in the technology and communication services sectors. Access to software, interactive media, and related companies. Use to express a view on North American software companies.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator articles on Technology sector ETFs:
Best Long-Term Performance Technology ETFs 1.2
Best Long-Term Performance Technology ETFs 1.1
Disclosure: We currently own shares of FDN and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.