{"id":3516,"date":"2025-08-08T17:10:54","date_gmt":"2025-08-08T17:10:54","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3516"},"modified":"2025-08-08T17:16:55","modified_gmt":"2025-08-08T17:16:55","slug":"is-it-too-late-to-buy-technology","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/is-it-too-late-to-buy-technology\/","title":{"rendered":"Is It Too Late to Buy Technology?"},"content":{"rendered":"

Our quick answer from a quantitative perspective is no.\u00a0 Of the 15 Sectors covered in reports by ValuEngine, the Technology sector ranks fourth in expected 12-month price return according to our forecast model.\u00a0 Our sector ratings are equally weighted indicating that this broad sector has strongly rated stocks throughout the market cap spectrum and beyond the \u201cMagnificent Seven.\u201d\u00a0 In fact, 570 of the roughly 4,000 US-listed stocks covered by ValuEngine are in the Technology Sector.\u00a0 Of these, roughly 32% or 180 stocks are currently rated <\/span>4 <\/b>(Buy) or <\/span>5 <\/b>(Strong buy).\u00a0 However, 110 of these stocks have less than $20 million in market capitalization and would fail many institutional investors\u2019 liquidity and\/or fiduciary screens.\u00a0 Thus, we narrowed this week\u2019s analysis to the 70 stocks that pass this screen.<\/span><\/p>\n

All 5,200+ stocks US and Canadian stocks, 16 sector groups, 200+ industries, and 700+\u00a0 ETFs have been updated.\u00a0 Two-week free trial available: <\/b>www.ValuEngine.com<\/b><\/a><\/h5>\n

While all 70 of these stocks are forecast to post significantly higher price returns than the median stocks we rate according to our predictive model, they are not necessarily favored by ValuEngine\u2019s valuation model. In fact, 63 of the 70 are rated as overvalued.\u00a0 This means that while the forecast model predicts further price appreciation, the stocks are already over valued and therefore more risky.\u00a0 If we remove these as too risky, this leaves 7 Technology Stocks with more than $20 million in market cap that are currently selling below what we calculate as Fair Value.\u00a0 All of those happen to be rated <\/span>5<\/b> (Strong Buy) as well.<\/span><\/p>\n

Here is the list of the tech stocks that passed all of these screens:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
Ticker<\/b><\/td>\n Company Name<\/b><\/td>\nIndustry Name<\/b><\/td>\nVE Rating<\/b><\/td>\nLast Close<\/b><\/td>\nFair Value<\/b><\/td>\nOne Year Forecast Price Return<\/b><\/td>\n<\/tr>\n
ZM<\/span><\/td>\nZOOM COMMUN<\/span><\/td>\nINTERNET SOFTWARE<\/span><\/td>\n5<\/span><\/td>\n75.39<\/span><\/td>\n151.60<\/b><\/td>\n17.65%<\/span><\/td>\n<\/tr>\n
IFNNY<\/span><\/td>\nINFINEON TECH<\/span><\/td>\nELEC-SEMICONDUCTORS<\/span><\/td>\n5<\/span><\/td>\n40.66<\/span><\/td>\n57.53<\/b><\/td>\n17.76%<\/span><\/td>\n<\/tr>\n
XYZ<\/span><\/td>\nBLOCK INC<\/span><\/td>\nINTERNET SOFTWARE<\/span><\/td>\n5<\/span><\/td>\n80.57<\/span><\/td>\n111.78<\/b><\/td>\n16.70%<\/span><\/td>\n<\/tr>\n
TWLO<\/span><\/td>\nTWILIO INC-A<\/span><\/td>\nINTERNET SOFTWARE<\/span><\/td>\n5<\/span><\/td>\n131.51<\/span><\/td>\n156.74<\/b><\/td>\n21.61%<\/b><\/td>\n<\/tr>\n
HUBS<\/span><\/td>\nHUBSPOT INC<\/span><\/td>\nINTERNET SOFTWARE<\/span><\/td>\n5<\/span><\/td>\n559.23<\/span><\/td>\n631.97<\/b><\/td>\n11.78%<\/span><\/td>\n<\/tr>\n
MRVL<\/span><\/td>\nMARVELL TEC INC<\/span><\/td>\nELEC-SEMICONDUCTORS<\/span><\/td>\n5<\/span><\/td>\n75.91<\/span><\/td>\n77.54<\/b><\/td>\n13.62%<\/span><\/td>\n<\/tr>\n
NOW<\/span><\/td>\nSERVICENOW INC<\/span><\/td>\nIT SERVICES<\/span><\/td>\n5<\/span><\/td>\n985.75<\/span><\/td>\n997.41<\/b><\/td>\n14.55%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

Zoom Communications<\/span> (<\/span>ZM<\/b>) –<\/span> Zoom Communications Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices.\u00a0 The company was incorporated in 2011 and is headquartered in San Jose, California.<\/span><\/p>\n

Infineon Technologies AG<\/span> (<\/span>IFNNY<\/b>) – Infineon Technologies AG engages in the design, development, manufacture, and marketing of semiconductors and semiconductor-based solutions worldwide.\u00a0 Segments include: Automotive; Industrial Power & Sensor; and Connected Secure Systems.\u00a0 The company was incorporated in 1999 and is headquartered in Neubiberg, Germany.<\/span><\/p>\n

Block Inc<\/span>.(<\/span>XYZ<\/b>) – builds ecosystems focused on commerce and financial products and services in the United States and internationally. It operates through two segments: Square and Cash App. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in Oakland, California.<\/span><\/p>\n

Twilio Inc.<\/span> (<\/span>TWLO<\/b>) – offers customer engagement platform solutions in the United States and internationally. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user authentication and identity.\u00a0 Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California<\/span><\/p>\n

HubSpot <\/span>(<\/span>HUBS<\/b>) – provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company’s CRM platform includes Marketing Hub, Sales Hub, Service Hub, and Content and Operations Hub.\u00a0The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.\u00a0<\/span><\/p>\n

Marvell Technology, Inc<\/span>. (<\/span>MRVL<\/b>) <\/span>– provides data infrastructure semiconductor solutions, spanning the data center core to network edge. The company develops system-on-a-chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of ethernet solutions, including spanning controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits.\u00a0It operates in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, and Vietnam. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.<\/span><\/p>\n

ServiceNow, Inc<\/span>.(<\/span>NOW<\/b>)\u00a0 – provides cloud-based solutions for digital workflows in North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform, an AI platform for digital transformation machine learning, robotic process automation, process mining, analytics, and low-code\/no-code development tools.\u00a0 ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.<\/span><\/p>\n

Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

All seven stocks of the above companies are rated <\/span>5 <\/b>(Strong Buy) and are priced below what we calculate as \u201cFair Value.\u201d\u00a0 We determine Fair Value by multiplying the current price by (1 +\/- the percentage by which the stock is undervalued over overvalued according to the ValuEngine Fair Value model).\u00a0 According to this formula, <\/span>ZM <\/b>is nearly 100% undervalued.\u00a0 The undervaluation levels calculated for <\/span>IFFNY, XYZ, TWLO<\/b>, and <\/span>HUBS <\/b>are also quite large.\u00a0 <\/span>MRVL<\/b> and <\/span>NOW <\/b>are just a bit undervalued and could be thought of as constituting opportunities for growth at a reasonable price, sometimes referred to by the acronym GARP.\u00a0\u00a0<\/span><\/p>\n

As detailed in the above descriptions, only the German semiconductor company Infineon (<\/span>IFNNY<\/b>) is not headquartered in the USA.\u00a0 Other <\/span>5<\/b>-rated Strong Buy companies headquartered outside the US include Chinese internet services company KE Holdings (<\/span>BEKE<\/b>) and Canadian internet services company Shopify <\/span>(SHOP<\/b>). Several wireless companies are also highly rated.\u00a0 T-Mobile (<\/span>TMUS<\/b>) is rated <\/span>5<\/b> while the American Depository Receipts (ADRs) of Swedish giant Ericsson (<\/span>ERIC<\/b>) and Finnish giant Nokia (<\/span>NOK<\/b>) are rated <\/span>4.\u00a0 <\/b>US stalwart AT & T (<\/span>T<\/b>) is also rated at <\/span>4 <\/b>but is far more overvalued according to our models.<\/span><\/p>\n

As far as \u201cThe Magnificent Seven\u201d are concerned, most of them are rated <\/span>4 <\/b>or <\/span>5 <\/b>as well.\u00a0 Nvidia (<\/span>NVDA<\/b>) and Meta Platforms <\/span>(META<\/b>) are the highest rated at <\/span>5.\u00a0 <\/b>Google (<\/span>GOOGL<\/b>), Amazon <\/span>(AMZN<\/b>), Microsoft (<\/span>MSFT<\/b>)\u00a0 and Tesla (<\/span>TSLA<\/b>) are rated at <\/span>4.\u00a0 <\/b>Only Apple (<\/span>AAPL<\/b>) is\u00a0 rated <\/span>3 <\/b>(Hold).\u00a0 Another tech stock with a market capitalization over 1 billion, Broadcom (<\/span>AVGO<\/b>), sometimes called the 8<\/span>th<\/span> member of the Magnificent Seven, gets a Buy rating of <\/span>4.\u00a0 <\/b>An ADR of a non-US-listed stock with over a trillion dollars in market cap and very much part of this conversation, Taiwan Semiconductor (<\/span>TSM<\/b>) is also rated <\/span>4.\u00a0 <\/b>Interestingly, as a result of recent market movements, Tesla (<\/span>TSLA<\/b>) has fallen below the trillion market cap mark at $974 billion.<\/span><\/p>\n

Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

Turning to Technology ETFs, we look at the nomenclature system and data from ETFdb.com, a TMX VettaFi company, to set the table for us.\u00a0 There are 175 ETFs classified as Technology. Of those, 41 are leveraged and\/or inverse and excluded from this analysis.\u00a0 Of the 134 that remain, 89 are indexed and 45 are active.\u00a0\u00a0<\/span><\/p>\n

This table highlights the top 20 tech ETFs in descending order by Assets Under Management.<\/span><\/p>\n

Current ValuEngine reports on all covered stocks and ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Ticker Symbol<\/b><\/td>\nETF Name\u00a0<\/b><\/td>\nAssets ($Bil)<\/b><\/td>\nAvg. Daily Volume (,000s)<\/b><\/td>\nYTD Price Change<\/b><\/td>\nExpense Ratio<\/b><\/td>\n Annual Dividend Yield %<\/b><\/td>\n# of Holdings<\/b><\/td>\n<\/tr>\n
QQQ<\/span><\/td>\nInvesco QQQ Trust Series I<\/span><\/td>\n$361.1\u00a0<\/span><\/td>\n44,415<\/span><\/td>\n11.42%<\/span><\/td>\n0.20%<\/span><\/td>\n0.50%<\/span><\/td>\n102<\/span><\/td>\n<\/tr>\n
VGT<\/span><\/td>\nVanguard Information Technology ETF<\/span><\/td>\n$98.3\u00a0<\/span><\/td>\n493<\/span><\/td>\n11.90%<\/span><\/td>\n0.09%<\/span><\/td>\n0.46%<\/span><\/td>\n321<\/span><\/td>\n<\/tr>\n
XLK<\/span><\/td>\nTechnology Select Sector SPDR Fund<\/span><\/td>\n$83.5\u00a0<\/span><\/td>\n5,641<\/span><\/td>\n13.96%<\/span><\/td>\n0.09%<\/span><\/td>\n0.60%<\/span><\/td>\n70<\/span><\/td>\n<\/tr>\n
SMH<\/span><\/td>\nVanEck Semiconductor ETF<\/span><\/td>\n$26.5\u00a0<\/span><\/td>\n7,371<\/span><\/td>\n20.33%<\/span><\/td>\n0.35%<\/span><\/td>\n0.37%<\/span><\/td>\n26<\/span><\/td>\n<\/tr>\n
IYW<\/span><\/td>\niShares U.S. Technology ETF<\/span><\/td>\n$22.5\u00a0<\/span><\/td>\n761<\/span><\/td>\n13.76%<\/span><\/td>\n0.39%<\/span><\/td>\n0.19%<\/span><\/td>\n142<\/span><\/td>\n<\/tr>\n
FTEC<\/span><\/td>\nFidelity MSCI Information Technology Index ETF<\/span><\/td>\n$14.7\u00a0<\/span><\/td>\n311<\/span><\/td>\n11.98%<\/span><\/td>\n0.08%<\/span><\/td>\n0.44%<\/span><\/td>\n281<\/span><\/td>\n<\/tr>\n
SOXX<\/span><\/td>\niShares Semiconductor ETF<\/span><\/td>\n$13.5\u00a0<\/span><\/td>\n5,858<\/span><\/td>\n14.44%<\/span><\/td>\n0.34%<\/span><\/td>\n0.67%<\/span><\/td>\n31<\/span><\/td>\n<\/tr>\n
IGV<\/span><\/td>\niShares Expanded Tech-Software Sector ETF<\/span><\/td>\n$11.8\u00a0<\/span><\/td>\n4,289<\/span><\/td>\n12.74%<\/span><\/td>\n0.39%<\/span><\/td>\n0.00%<\/span><\/td>\n115<\/span><\/td>\n<\/tr>\n
CIBR<\/span><\/td>\nFirst Trust NASDAQ Cybersecurity ETF<\/span><\/td>\n$10.2\u00a0<\/span><\/td>\n994<\/span><\/td>\n17.26%<\/span><\/td>\n0.59%<\/span><\/td>\n0.25%<\/span><\/td>\n33<\/span><\/td>\n<\/tr>\n
KWEB<\/span><\/td>\nKraneShares CSI China Internet ETF<\/span><\/td>\n$7.7\u00a0<\/span><\/td>\n16,503<\/span><\/td>\n23.12%<\/span><\/td>\n0.70%<\/span><\/td>\n2.90%<\/span><\/td>\n29<\/span><\/td>\n<\/tr>\n
FDN<\/span><\/td>\nFirst Trust Dow Jones Internet Index Fund<\/span><\/td>\n$7.5\u00a0<\/span><\/td>\n349<\/span><\/td>\n12.16%<\/span><\/td>\n0.49%<\/span><\/td>\n0.00%<\/span><\/td>\n41<\/span><\/td>\n<\/tr>\n
ARKK<\/span><\/td>\nARK Innovation ETF<\/span><\/td>\n$7.3\u00a0<\/span><\/td>\n10,885<\/span><\/td>\n35.35%<\/b><\/td>\n0.75%<\/span><\/td>\n0.00%<\/span><\/td>\n42<\/span><\/td>\n<\/tr>\n
IGM<\/span><\/td>\niShares Expanded Tech Sector ETF<\/span><\/td>\n$7.0\u00a0<\/span><\/td>\n413<\/span><\/td>\n13.75%<\/span><\/td>\n0.39%<\/span><\/td>\n0.22%<\/span><\/td>\n281<\/span><\/td>\n<\/tr>\n
IXN<\/span><\/td>\niShares Global Tech ETF<\/span><\/td>\n$5.7\u00a0<\/span><\/td>\n149<\/span><\/td>\n13.57%<\/span><\/td>\n0.39%<\/span><\/td>\n0.38%<\/span><\/td>\n120<\/span><\/td>\n<\/tr>\n
AIQ<\/span><\/td>\nGlobal X Artificial Intelligence & Technology ETF<\/span><\/td>\n$4.2\u00a0<\/span><\/td>\n691<\/span><\/td>\n16.40%<\/span><\/td>\n0.68%<\/span><\/td>\n0.13%<\/span><\/td>\n87<\/span><\/td>\n<\/tr>\n
RSPT<\/span><\/td>\nInvesco S&P 500 Equal Weight Technology ETF<\/span><\/td>\n$3.7\u00a0<\/span><\/td>\n300<\/span><\/td>\n12.45%<\/span><\/td>\n0.40%<\/span><\/td>\n0.21%<\/span><\/td>\n70<\/span><\/td>\n<\/tr>\n
SKYY<\/span><\/td>\nFirst Trust Cloud Computing ETF<\/span><\/td>\n$3.6\u00a0<\/span><\/td>\n184<\/span><\/td>\n5.43%<\/span><\/td>\n0.60%<\/span><\/td>\n0.00%<\/span><\/td>\n62<\/span><\/td>\n<\/tr>\n
XT<\/span><\/td>\niShares Exponential Technologies ETF<\/span><\/td>\n$3.5\u00a0<\/span><\/td>\n107<\/span><\/td>\n13.03%<\/span><\/td>\n0.46%<\/span><\/td>\n0.66%<\/span><\/td>\n197<\/span><\/td>\n<\/tr>\n
TDIV<\/span><\/td>\nFirst Trust NASDAQ Technology Dividend Index Fund<\/span><\/td>\n$3.3\u00a0<\/span><\/td>\n108<\/span><\/td>\n17.59%<\/span><\/td>\n0.50%<\/span><\/td>\n1.40%<\/span><\/td>\n87<\/span><\/td>\n<\/tr>\n
QTEC<\/span><\/td>\nFirst Trust NASDAQ-100 Technology Sector Index Fund<\/span><\/td>\n$2.7\u00a0<\/span><\/td>\n152<\/span><\/td>\n16.07%<\/span><\/td>\n0.55%<\/span><\/td>\n0.02%<\/span><\/td>\n46<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Financial Advisory Services based on ValuEngine\u2019s research models: <\/b>www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

Analysis:<\/span><\/p>\n

    \n
  1. The largest, most-traded and best known ETF in this group is <\/span>QQQ<\/b> with the formal name Invesco QQQ Trust Series I.\u00a0 The trust uses modified market-cap weighting to hold the stocks in the Nasdaq-100 index.\u00a0 The latter is an index of the 100 largest non-financial and non-utility companies listed on the Nasdaq exchange.\u00a0 As such, it is <\/span>not<\/span> a pure technology index. Non-tech holdings include Costco Wholesale (<\/span>COST<\/b>), PepsiCo (<\/span>PEP<\/b>) and Amgen (<\/span>AMGN<\/b>). \u00a0 It also does not include technology stocks such as IBM with primary listings on the NYSE.\u00a0 However, it is close enough that it has become the go-to Technology ETF for most investors and the vast majority of traders. That said, and as we\u2019ve repeated a number of times in the past:\u00a0 When buying new shares of <\/span>QQQ<\/b>, first consider <\/span>QQQM<\/b>, the Nasdaq-100 ETF.\u00a0 It holds exactly the same portfolio at a fee of 0.15% which is 5 basis points lower than the 0.20% expense ratio of <\/span>QQQ<\/b>, saving investors 0.05% in annual returns.\u00a0 In either form, <\/span>QQQ <\/b>or <\/span>QQQM<\/b>, the ETFs are both rated <\/span>4 <\/b>(Buy) by ValuEngine.\u00a0 <\/span><\/li>\n
  2. The next two in line are VGT, <\/b>The Vanguard Technology ETF and XLK<\/b>, the Technology Select Sector SPDR from State Street Global Advisors.\u00a0 Both are pure plays in the US technology sector, and both charge the same economical expense ratio of 0.09%.\u00a0 Like all the Select Sector SPDR ETFs, XLK <\/b>applies modified market cap weighting to all the stocks in a given sector of the S&P 500, in this case 70 stocks.\u00a0 Most other sectors are not as broad.\u00a0 That said, investors looking for broader exposure may feel they are getting more for the same expense ratio with VGT <\/b>which holds 321 US technology stocks and includes midcap and some small-cap stocks in addition to the large cap stocks that dominate the ETF\u2019s weighting.\u00a0 Fifth-ranked IYW, <\/b>iShares US Technology Index ETF has only 25% of the assets of VGT <\/b>despite starting five years earlier and for good reason.\u00a0 IYW <\/b>offers less-broad exposure but charges about four times the expense ratio.\u00a0 The final broad technology US Sector fund actually has the lowest expense ratio, 0.08%.\u00a0 It is FTEC, <\/b>the Fidelity MSCI Information technology ETF and holds a very similar portfolio to VGT<\/b>.\u00a0 Thus far, the one-basis-point differential has not been enough to entice most institutional holders of VGT <\/b>to switch to FTEC.\u00a0 <\/b>At any rate, the best returns in this category year-to-date and annualized over 5 years has gone to XLK<\/b>, the narrowest ETF in this group.\u00a0 All four of these US-Tech-industry-exposure ETFs are rated 3 <\/b>\u00a0(Hold) by ValuEngine.<\/li>\n
  3. All the other ETFs in this grouping are either more targeted, use different weighting schemes, or hold some or all non-US stocks.\u00a0 The top performer year-to-date in this group is ARKK<\/b>, the ARK Innovation ETF with better than 35%.\u00a0 Although no longer the US AUM leader among all active ETFs, ARKK <\/b>certainly is the top AUM actively managed ETF within the Technology Sector.\u00a0 However, on a 5-year annualized basis, ARKK <\/b>has the second lowest annualized return, -0.6%, in the group.\u00a0 After a magnificent beginning performance-wise which served to legitimize actively managed ETFs as an alternative to the popular indexed ETFs and to the less efficiently structured traditional mutual funds, ARKK<\/b>\u2019s returns began to suffer late last decade.\u00a0 The fund now has a feast-or-famine reputation in terms of potential to realize superior returns, which is fair given that markets are cyclical. \u00a0 Historically, the top outperforming actively managed funds tend to flip when market cycles change.\u00a0 ARKK<\/b>\u2019s AUM of $7.2 billion may be significantly down from its all-time peak but certainly is #1 among the 45 actively managed funds serving this sector.<\/li>\n
  4. Next on the list of\u00a0 year-to-date price gainers is KWEB<\/b>, KraneShares CSI China Internet ETF.\u00a0 It is the only non-US single-country focused ETF in the top twenty and demand for new shares has been rising this year in tandem with its price.\u00a0 It is #10 overall on the chart in Assets Under Management.\u00a0 However, there is also considerable currency exposure.\u00a0 In the five-year period, its annualized return is -9%, almost entirely because the renminbi had declined versus the dollar through most of this period before rebounding sharply this year.<\/li>\n
  5. The final ETF with a return above 20% is SMH<\/b>, the Van Eck Semiconductor ETF.\u00a0 It is also a very impressive fourth in AUM.\u00a0 With a close to 30% annualized five-year return, it is the leader in that category by a wide margin.\u00a0 Although most of this can be attributed to the fact that semiconductors have outperformed most other technology industries and sub-sectors, SMH\u00a0 <\/b>has significantly out performed and garnered more assets than the other semiconductor ETF,\u00a0 SOXX<\/b> from iShares.<\/li>\n
  6. Other subsectors and specific industries within tech covered by ETFs in the group include: software, internet commerce, cybersecurity, artificial intelligence, cloud computing and pioneering technologies.\u00a0 \u00a0 Two are globally rather than US-focused.\u00a0 Finally, two of these ETFs, RSPT<\/b> and QTEC,<\/b> are variations or subsets of QQQ.\u00a0 <\/b><\/li>\n
  7. Although several Technology subsector ETFs are rated 5 <\/b>(Strong Buy) from ValuEngine, only one is in the top 20 in Assets Under Management.\u00a0 That ETF is FDN<\/b>, the\u00a0 First Trust Dow Jones Internet Index Fund.\u00a0 Smaller ETFs, as ranked by AUM, that are currently ranked\u00a0 5 <\/b>(Strong Buy) include: BUYZ<\/b>, Franklin Disruptive Commerce ETF; NBDS<\/b>, Neuberger Berman Disrupters ETF and SEMI<\/b>, Columbia Select Technology ETF.<\/li>\n
  8. Only two of the ETFs offer dividend yields higher than 1%, KWEB<\/b> and TDIV<\/b>.\u00a0 This is expected since the technology sector is known as a growth sector, providing relatively few value or income opportunities.<\/li>\n<\/ol>\n
    Financial Advisory Services based on ValuEngine\u2019s research models: <\/b>www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

    In summary, while many strategists are advising people that the high valuations in technology stocks and ETFs augurs that it is time to dump this group and rotate into value stocks, our forecast model disagrees, seeing the above average growth supported sufficiently by above average earnings-related streams and strong contributory factors.\u00a0 On the other hand, a preponderance of overvalued stocks according to our valuation model also means that above-average upside opportunities are accompanied by significantly above-average risks.\u00a0\u00a0<\/span><\/p>\n

    _____________________________________________________________________<\/span><\/p>\n

    By Herbert Blank<\/b><\/h5>\n
    Senior Quantitative Analyst, ValuEngine Inc ( <\/b>www.ValuEngine.com<\/b><\/a> )<\/b><\/h5>\n
    support@ValuEngine.com <\/b>(321) 325-0519<\/b><\/h5>\n
    All of the over 4,200 stocks, 16 sector groups, over 250 industries, and 600 ETFs have been updated on<\/b> www.ValuEngine.com<\/b><\/a><\/h5>\n
    Financial Advisory Services based on ValuEngine research available through<\/b> ValuEngine Capital Management, LLC<\/b><\/a><\/h5>\n
    Free Two-Week Trial to all 6,000 plus equities and ETFs covered by ValuEngine<\/b> HERE<\/b><\/a><\/h5>\n
    Subscribers log in <\/b>HERE<\/b><\/a><\/h5>\n

    \u00a0<\/span><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Our quick answer from a quantitative perspective is no.\u00a0 Of the 15 Sectors covered in reports by ValuEngine, the Technology sector ranks fourth in expected 12-month price return according to our forecast model.\u00a0 Our sector ratings are equally weighted indicating that this broad sector has strongly rated stocks throughout the market cap spectrum and beyond … Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[130,1,39],"tags":[51,2214,469,2645,2648,1755,31,2647,2637,2215,2639,1719,2223,2206,2635,2644,1731,2627,2628,2625,2210,2213,2633,2632,2541,2082,2643,2629,2630,2646,2636,2640,2641,2341,2631,77,2642,1617,2006,2170,1510,1713,1561,2623,2634,1550,2416,2220,2203,2164,2216,1494,2204,2184,2638,402,2506,2650,2649,2289,2505,28,63,2009,1887,2218,2521,2531,2626,2624],"_links":{"self":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3516"}],"collection":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/comments?post=3516"}],"version-history":[{"count":2,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3516\/revisions"}],"predecessor-version":[{"id":3518,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3516\/revisions\/3518"}],"wp:attachment":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/media?parent=3516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/categories?post=3516"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/tags?post=3516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}