2024-05-03 15:57:21 ET
Summary
- SPDR NYSE Technology ETF warrants a hold rating due to long-term factors impacting its expected returns.
- XNTK is an equal-weighted tech fund that has outperformed over the past year but may lag behind cap-weighted funds due to the advantages of larger, mega-cap companies.
- Mega-cap tech companies have strong accelerating factors such as their financial strength to survive downturns, R&D investment, and attraction of human talent.
- Due to the factors above, I favor VGT and QQQ which are not equal-weighted. They also have lower expense ratios and better long-term track records of performance compared to XNTK.
Investment Thesis
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For further details see:
XNTK: Recent Outperformance, But Will Likely Lag Peers Long Term For 3 Reasons