TradingMarkets Everything You Need to Know about Trading ETFs: XLK, REW, RTW
With so much attention in recent years being focused on financial and energy markets, it is hard to believe that we were once a trading and investing community obsessed with technology.
Maybe we have come to take technological leaps and bounds for granted. But that doesn’t mean that ETF traders and investors should turn up their noses when it comes to trading and investing in the technology sector. From software to hardware, and from scientific and military applications to the kind of gadgets and gizmos increasingly carried in the pockets of young and old alike in our society, technology is here to stay and that means potential opportunity for those who own and trade technology stocks.
For ETFs traders and investors, one of the easiest ways to get exposure to the top technology companies is through exchange-traded funds like the Technology Select Sector SPDRS, XLK
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This exchange-traded fund is loaded with the kind of technology companies that have become household names: Apple
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The XLK is dominated by hardware companies, which make up about 40% of the funds holdings. The rest of the components include stocks from sector such as software, telecommunications and business services.
For more information about the Technology Select Sector SPDRS, visit sectorspdr.com
What if you already have a technology-heavy stock portfolio? Short or inverse technology ETFs are a simple way to hedge your portfolio should technology stocks move lower. Leveraged inverse ETFs, such as the ProShares UltraShort Technology ETF, REW
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For more information about the ProShares UltraShort Technology ETF, visit proshares.com.
For more information about the Rydex 2X Inverse S&P Select Sector Technology ETF, visit rydexinvestments.com
Coming next: TradingMarkets Everything You Need to Know about Trading ETFs will be back on Thursday with a look at the exchange-traded funds market for traders and investors looking for exposure to biotechnology stocks. We’ll separate the pure plays from the pharmaceutical plays this Thursday at TradingMarkets!
According to a recent report, eight out of ten securities traded are exchange-traded funds. Want to learn how to trade them? Click here to find out what traders are saying about Larry Connors’ new book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs!