XSW - SPDR S&P Software & Services ETF: It's Too Early To Rotate Away From Software
- The software sector has significantly outperformed the S&P 500 over the past year as well as most other sectors.
- However, valuations are high and there is a concern that the market is due to rotate out of tech/software and into cyclicals/value.
- I'm not sure I buy the rotation thesis just yet given a pandemic that is raging out of control heading into the Fall/Winter flu/holiday season.
- As a result, you should keep direct exposure to software in your portfolio. Just make sure you're exposed to the right companies.
For further details see:
SPDR S&P Software & Services ETF: It's Too Early To Rotate Away From Software