Best Sector Of February And Its Top ETFs & Stocks

The technology sector, which is heavily depended on China for revenues, has been the biggest beneficiary of the optimism surrounding trade deal between the United States and China. This is especially true as the nearly year-long trade spat between the world’s two largest economies seems to be coming to an end after Donald Trump delayed his plan for raising tariff on $200 billion worth of Chinese goods from 10% to 25%, indicating a fruitful trade deal.

A slew of stronger-than-expected earnings results by major technology firms also supported investors’ sentiment. Additionally, the sector’s long-term story remains intact with the emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence and machine. The deployment of 5G (fifth-generation) technology — the next wireless revolution — is creating further opportunities. The wave of mergers and acquisitions is also providing further impetus to the space.

Adding to the strength is a pickup in the economy and better job prospects that are giving a solid boost to economically sensitive growth sectors like technology, which perform typically well in a maturing economic cycle. Moreover, the technology sector boasts a solid rank, which places it in the top 32% of the 16 Zacks Sectors, in terms of ranking.

The bullish trend is likely to continue at least in the short term. Given this, investors might want to tap into the space with the top-performing technology ETFs and stocks over the past month. For them, we have highlighted five ETFs and stocks that are poised to perform well heading into the conclusion of the first quarter:

Best ETFs

iShares North American Tech-Multimedia Networking ETF (IGN - Free Report)
 
This ETF provides exposure to telecom equipment, data networking, and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index.

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