5 Solid Tech ETFs To Buy For Christmas

Technology has been the best-performing sector this year with the ultra-popular Select Sector SPDR Technology ETF (XLK - Free Report) climbing 45.8% versus the gain of 28.7% for the broad market fund SPDR S&P 500 (SPY - Free Report). The bullish trend is likely to strengthen this Christmas especially since the U.S.-China phase one trade deal has eased trade war tensions.

China committed to buy $40 billion of American agricultural products annually, tighten measures for protecting American intellectual property, and stop forcing American companies to transfer their technology when doing business in China. In return, Trump has agreed to halt the planned tariffs on $156 billion of Chinese goods that is due to take effect on Dec 15 and will also cut the tariffs from 15% to 7.5% on $120 billion of Chinese goods that were imposed in September. However, the 25% tariff on $250 billion of Chinese imports imposed in March 2018 will remain in place.

Further, holiday optimism is expected to drive tech stocks higher on a digital shopping spree. New video streaming services, more 4K Ultra HD content and larger screens on TVs and smartphones are putting entertainment on gift lists this holiday. Screens like laptops, smartphones, and TVs will top gift lists followed by the fast-growing emerging tech categories like smart home devices and wearables.

According to the Consumer Technology Association (CTA), U.S. technology spending during the 2019 holiday season (October–December) is expected to reach a $97.1 billion, on par with last year. About 71% of the holiday shoppers are likely to buy content-related gifts like video games (43%) and subscriptions to services like Netflix (NFLX - Free Report) or Hulu (39%).

Given the bullish holiday outlook, the tech sector appears a compelling last-minute investment. As such, we have highlighted a few tech ETFs that could see surge this Christmas:

iShares PHLX Semiconductor ETF (SOXX - Free Report)

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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