Tech ETF Outperforms Market

Sector ETFs, and in particular, the Technology Sector ETFs, have proven to be a reasoned approach to investing.

According to Boom to Bust and Back: Tech ETF, the WSJ’s Nat Worden writes that the SPDR Technology Select ETF (XLK) is up 34% this year compared to 16% for the SPDR S&P 500 (SPY).

The $3.7 billion fund holds positions in 85 tech and telecom companies including Microsoft, IBM, Apple, AT&T and Google.

Sector ETFs are not managed which keeps the fees low – XLK’s expense ratio is just 0.21%. Unlike mutual funds, ETFs are transparent and offer investor friendly trading.

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