It is simple for the main firms like Alphabet Inc. (GOOG), Facebook Inc. (FB), and Amazon.com Inc. (AMZN) to monopolize the attention during earnings season when it comes to the IT industry. Companies like the ones described above often control the assets in exchange-traded vehicles with an emphasis on technology.
In order to stay focused in a sector that is developing quickly and deserving of inclusion in any portfolio, we have decided to concentrate on sub-segments of the IT industry where the portfolio holdings in the large players tend to be decreased.
SPDR S&P Internet ETF (XWEB)
The IT sector’s sub-industries, such as internet services, infrastructure, and interactive media, have benefited from consistent demand growth over the last ten years, but most retail investors prefer to ignore them. The SPDR Internet ETF is one exchange-traded fund (ETF) that may be worth paying greater attention to for investors looking for a strategic or tactical position at a more focused level than typical tech investment (XWEB).
The price has just risen above a crucial horizontal trendline and the barrier of its 200-day moving average, as seen in the chart below. The breakthrough led to a golden crossing, or bullish crossover, between its 50-day and 200-day moving averages. The recent recovery off of close support will probably be utilized to reaffirm that the bulls are in charge of the momentum. This well-known long-term buy signal often heralds the start of a significant rally. In the event of a rapid change in attitude, bullish traders will probably try to increase their holdings close to present levels and safeguard against a sell-off by putting stop-loss orders below $87.21.
SPDR Kensho Smart Mobility ETF (XKST)
Smart transportation is another specialized area of the IT industry that has been attracting attention as a result of the quick pace of innovation. We’re talking about the businesses that are driving developments in autonomous and connected car technology, commercial and domestic drone usage, and sophisticated monitoring and optimization systems for the transportation sector. The SPDR Kensho Smart Mobility ETF is one intriguing ETF that may be well worth a deeper study for individuals seeking exposure to this specialized market (XKST).
On the chart, you can see that the price has risen above the 200-day moving average’s resistance, and that this movement has resulted in a golden crossover between the two moving averages. Given the favorable risk-to-reward setup and the closeness to key support levels, it seems that the bulls are in complete control and that a substantial move off of support is imminent.
SPDR FactSet Innovative Technology ETF (XITK)
The SPDR FactSet Innovative Technology ETF is another comparatively little-watched technology ETF that could be worth paying more attention to (XITK).As the name suggests, the management of this fund have set up XITK to provide investors exposure to businesses that provide cutting-edge goods and services while also exhibiting strong revenue growth. Due to the nature of its diversified assets, which now total 95, holders of this fund are also especially interested in exposure to the overall growth in new technology across a variety of broad-reaching trends.
On the chart, you can see that the price just crossed a significant resistance level. The breakthrough indicates that the bulls are in charge of the momentum and that prices may be on the verge of increasing in the next weeks or months.
The Bottom Line
The biggest players get the greatest attention from retail traders interested in technology since they are the companies they are most familiar with. But specialty funds, like those discussed in the article above, provide investors a different perspective than what is consistently being reported in the media, and they now seem to be in position for a substantial rise upward.
Casey Murphy had no ownership interest in any of the assets listed at the time of writing.
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