Burned by Tech Stocks? Try These 3 ETFs Instead
They may be the market's most rewarding long-term names. But let's face it -- technology stocks are also uncomfortably volatile, capable of shaking you out of trades at the worst possible time. For perspective, the S&P 500 Information Technology index now sits 27% below its late-2021 high, leading the S&P 500's bearish charge this year. That tumble follows the 140% rally from the tech index's early 2020 low, but that low was the result of a 28% rout linked to the advent of the COVID-19 pandemic. Unless you had nerves of steel it's likely you didn't get in at that bottom. It's also probable you didn't bail out at the sector's peak late last year.
And that's just the technology index's action. Some tech stocks have dished out even bigger swings, vexing investors trying to chase their upside potential while steering clear of their downside moves. If you're done doing this dance, there are lots of smart exchange-traded fund (ETF) alternatives offering plenty of upside but with far less downside. Here's a closer look at three of the top choices.
It almost feels too obvious to suggest it to investors specifically looking to avoid the volatility that tech stocks bring to the table. But there's no denying that the Invesco S&P 500 Low Volatility ETF (NYSEMKT: SPLV) fits the bill.
Source Fool.com
