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Why Tech Deserves An Overweight Position Compared To The Broader Market

Most ETF investors track the broader market by investing in the leading SPDR S&P 500 ETF (SPY) and may track the technology sector being invested in PowerShares QQQ ETF (QQQ). The article, published on research platform, evaluates the performance of SPY and QQQ to find out which ETF has a better track record in bull markets and which one in bear markets.

The past shows that there’s a good reason to prefer a tech overweight compared to the broader market. In addition, the article shows that EPS-growth for the technology-sector outpaces that of the S&P 500. Valuations for QQQ are in line with the broader market, though investors should realize the large exposure to a relatively small number of companies. Read the fully story on Seeking