Technology ETF (XLK) Hits New 52-Week High
For investors seeking momentum, State Street Technology Select Sector SPDR ETF XLK is probably on the radar. The fund just hit a 52-week high and is up 58.87% from its 52-week low price of $108.24/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
XLK in Focus
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The product charges 8 bps in annual fees (see: All Technology ETFs).
Why the Move?
The technology sector remains one of the key areas to watch as the AI boom continues to drive market momentum. AI remains a dominant investment theme, supported by sustained capital spending from Big Tech companies, signaling that the current investment cycle still has room to run. At the same time, strong U.S. corporate earnings, led by the resilience of the technology sector, are providing an added tailwind for the fund.
More Gains Ahead?
Currently, XLK has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 59.18 (as per Barchart.com), which gives cues of a further rally.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
State Street Technology Select Sector SPDR ETF (XLK): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
