ETF Talk: Can You Trust Technology?

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

If you are reading this report, you are using technology. More and more, technology is becoming part of our daily lives and ordinary activities. Just a few short years ago, computing tablet technology was considered extraordinary. Now, it is commonplace. Devices of all sorts are becoming increasingly connected, and the next big development beyond our current imaginations is just around the corner. How do you tap into the boundless potential of this sector? One way is by investing in the First Trust NASDAQ-100-Tech Index (QTEC).

This non-diversified exchange-traded fund (ETF) seeks results which, before fees and expenses, correspond generally to the performance of an index which is based on technology companies in the NASDAQ-100.

Following a solid rise in 2012, QTEC is up 7.5% so far this year. The fund offers a yield of 0.90%. Although it had a bit of a dip last November, QTEC has recovered nicely and looks to continue its growth as technology becomes more pervasive in society and in people’s lives.

QTEC’s holdings demonstrate a clear commitment to technology, since 100% of its holdings are in that sector. Its top 10 individually held companies comprise 25.45% of the ETF’s total assets, and they include such household technology names as Dell and Google. The top five of these are: Dell Inc. (DELL), 2.87%; Micron Technology, Inc. (MU), 2.85%; Symantec Corporation (SYMC), 2.71%; Applied Materials, Inc. (AMAT), 2.55%; and SanDisk Corporation (SNDK), 2.44%.

The technology sector is poised for tremendous growth in the near future, as currently hot technologies such as tablets and smartphones get even more popular and widely adopted. Also consider that newer technologies, such as speech recognition and 3-D printing, will become increasingly common in the years ahead. To tap these technology trends, now may prove to be a great time to invest in the sector’s ascent. QTEC is one of a number of technology ETF opportunities that are available for you to choose.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to email me by clicking here. You may see your question answered in a future ETF Talk.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor