5 Beaten-Down Tech ETFs To Buy For Christmas

The technology sector has been beaten down badly this quarter thanks to escalation in U.S.-China trade tensions. Weaker earnings also contributed to the decline. Notably, the ultra-popular Select Sector SPDR Technology ETF (XLK - Free Report) has shed 12.9% so far in the fourth quarter versus the loss of 9.1% for the broad market fund SPDR S&P 500 (SPY - Free Report).

However, renewed hopes of a deal between the two countries returned the appeal for tech stocks, which are heavily exposed to China. This is especially true as both the United States and China kicked off a new round of trade talks, per the Wall Street Journal report. China is working to replace its Made in China 2025 plan, a framework aimed at making China a leader in industries like clean energy cars and robotics, with a new program promising greater access to foreign companies.

Meanwhile, Trump said that he would intervene in the Justice Department's case against a top executive at China’s telecom giant Huawei if that helps in producing a trade agreement. The President also said that talks between Washington and Beijing were ongoing and he would not increase tariffs on Chinese imports without a comprehensive trade agreement.

Further, holiday optimism is expected to drive tech stocks higher on hopes of a digital shopping spree. Innovative products such as wearables, VR headsets, drones and virtual reality devices are fast becoming technology staples for the savvy Americans. According to the Consumer Technology Association (CTA), U.S. technology spending during the 2018 holiday season (October–December) is expected to reach a record $96.1 billion, up 3.4% from last year.

Mobile shopping will once again surpass shopping via computer as the number of consumers planning to shop via mobile devices is expected to rise to 58%. Consumers will spend a record amount on emerging technology such as smart speakers, smart home devices and smartwatches.

Given the recovering sentiments and a bullish holiday outlook, the tech sector appears as a compelling last-minute investment. As such, we have highlighted a few beaten-down tech ETFs that could see surge ahead of Christmas:

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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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