Best Performing Tech ETFs & Stocks Of May

Amid all political and geopolitical woes, the technology sector staged a nice comeback after taking a huge beating from a slew of negative news from some of its key companies. In fact, our Computer and Technology sector emerged out to be the top-performing sector in May, gaining more than 5%.

This is especially thanks to a deluge of upbeat earnings results that have restored confidence in the sector. In particular, the resurgence of FAAMNG stocks and the strength in chipmakers, especially after easing fears of trade war with China, propelled the stocks higher.

Further, the sector fundamentals have been encouraging as the fast-growing, cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, and artificial intelligence are acting as the key catalysts. Additionally, the twin tailwinds of Trump’s tax cuts and a rising interest rate scenario are also fueling growth. This is because tech titans hoard huge cash overseas and are poised to benefit the most from reduced tax rates. These companies are also sitting on a huge cash pile and in a position to increase payouts to their shareholders.

If these aren’t enough, the sector has a solid Zacks Rank in the top 34%, suggesting continued robust growth in the coming months.

Given this, investors might want to tap the space with the top-performing technology ETFs and stocks of May. For them, we have highlighted five funds and stocks that have seem excellent choices to play the trend at least in the near term.

ETFs

ETFMG Video Game Tech ETF (GAMR - Free Report)

This fund targets the global video game industry of the technology sector including game developers, console and chip manufacturers, and game retailers.

Zacks Rank: N/A
AUM: $118.4 million

Expense Ratio: 0.75%
May Return: 10.7%

ARK Innovation ETF (ARKK - Free Report)

This actively managed fund offers exposure to companies that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the genomic, industrial innovation or Web x.0.

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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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