5 Tech ETFs At The Forefront Of The Latest Sector Rally

After calming down for a few weeks, the technology sector regained its momentum over the past week. In fact, the sector rally pushed the S&P 500 to a new record high for the first time since the pandemic outbreak. It also sent the Nasdaq Composite Index to fresh all-time highs.

The gains were primarily driven by mega-cap companies, especially the FAANG stocks. Apple (AAPL - Free Report) crossed the $2 trillion market cap for the first time ever. This has made the technology giant the first U.S. company to reach this level after more than doubling in five months. Tesla spiked to $2,000 per share for the first time in its history. Shares of Facebook (FB - Free Report), Amazon (AMZN - Free Report), Netflix (NFLX - Free Report), Alphabet (GOOGL - Free Report) and Microsoft (MSFT - Free Report) also rose. Notably, the information technology stocks make up more than 27% of the S&P 500 Index.

Better-than-expected earnings have added to the strength in the tech stocks. The second-quarter earnings from 91% of the sector’s total market cap in the S&P 500 Index are down 3% on 3.5% higher revenues, with 91.7% beating on earnings and 78.3% beating revenue estimates. These are bigger beat percentages than that of the same group in the preceding quarter.       

The solid trend is likely to continue given the global digital shift that has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication and 5G technology will continue to drive the sector higher.

Given this, we have highlighted those ETFs that were at the forefront of the tech rebound over the past week. Investors seeking to benefit from the resurging tech sector could find them encouraging picks:

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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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