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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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Correlation to U.S. Markets: 0.85
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Long-Term Performance: 7.97% CAGR
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S&P 500 Performance: 7.56% CAGR
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Back test timeframe: January 1999 – April 2021
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Number of ETFs available in this asset class: 82
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Number of ETFs in this asset class that are 10-years old or older: 21
XLK vs SPY: January 1999 – April 2021
XLK vs SPY: December 22, 1998 – May 3, 2021
The Deep Value ETF Accumulator rankings for the 21 oldest Technology sector ETFs:
The 4 top ranked Technology sector ETFs head-to-head comparisons:
PNQI vs FDN vs PSJ vs XNTK: July 2008 – April 2021
PNQI vs FDN vs PSJ vs XNTK: June 13, 2008 – May 3, 2021
Stated objectives of 4 top ranked Technology sector ETFs:
PNQI – The Invesco NASDAQ Internet ETF (Fund) is based on the Nasdaq CTA Internet IndexSM. 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 companies engaged in Internet-related businesses that are listed on the New York Stock Exchange (“NYSE”), NYSE American, Cboe Exchange (“Cboe”) or The Nasdaq Stock Market (“Nasdaq”). Companies in the Index primary business include Internet-related services including, but not limited to, Internet software, Internet search engines, web hosting, website design or Internet retail commerce as determined by the Consumer Technology Association (CTA). 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 Intellidex℠ Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The 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 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.
XNTK – The SPDR® NYSE Technology ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the NYSE Technology Index (the “Index”). The NYSE Technology Index is composed of 35 leading US-listed technology-related companies. The Index is equal-weighted at its annual rebalance. The index comprises stocks in the Information Technology sector and technology-related stocks in the Consumer Discretionary sector.
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Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Technology sector ETFs:
4 Best Long-Term Performance Technology Sector ETFs 1.3
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 your 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.