2024-06-27 13:53:42 ET
Summary
- XLK's recent performance is likely to attract more momentum seeking investors, but there are significant risks involved.
- Extreme concentration within the ETF is making it less likely that it will continue to outperform more diversified alternatives.
- The current set-up also does not favour momentum stocks and this is a major red flag for the ETF's future performance.
Technology stocks have been the only game in town in recent months as the rest of the market continued to lag behind in terms of performance....
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For further details see:
XLK Technology SPDR: You Are Now Taking Unnecessary Risks