Global financial markets have witnessed technology as among the best performing sectors. PowerShares QQQ (Nasdaq:QQQ) exchange traded fund, has surged about 23% during last year. In the same period, Dow Jones Industrial Average has increased by about 10% and S&P 500 Index increased by 17%. This is shown in the graph below.
Tech stocks have a tendency to outperform other stocks. But this tendency is a double-edged sword. If you expect markets to rise then buy tech stocks.
During the last year, Nasdaq 100 index’s return increased by 7.38% due to tech stocks. This can be computed by analyzing the difference in the First Trust Nasdaq-100 Ex-Tech Sector Index Fund and the QQQ. Investing in the QQQ is among the most popular ways, however a lot of people might desire to invest in individual shares like Intel Corp., Oracle Corp., Google Inc., International Business Machines Corp. and Microsoft Corp. and Apple Inc.
For investors who do desist to pick individual stocks, there are many exchange traded funds available such as iShares Global Tech ETF. Advanced investors might desire to consider ETFs like QQXT and after that select particular technology names to have a customized tech-focused portfolio.