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Tech ETFs Roaring to New 52-Week Highs

3 years 5 months ago
The hot run for the technology sector is back and dominating the stock market rally once again. The combination of easing inflation, upbeat corporate earnings, the regional bank crisis and the adoption of new-era technologies have been driving the sector higher.The rally

Video Gaming ETFs Head to the Clouds

3 years 5 months ago
The video gaming, entertainment, and overall communications services sector is shifting away from physical media. And headed toward digital downloads and subscription-based models. The video gaming industry is further behind the video and audio streaming industries. But it could see a shift toward cloud-based gaming. With the Microsoft-Activision deal in the news recently, commentary from [...] Read more at ETFtrends.com.

QQQ ETF: Is there More Room to Run?

3 years 5 months ago
The Invesco QQQ Trust ( QQQ ) ETF ( Exchange-Traded Fund) has advanced more than 24% so far in 2023, outperforming the 8% rise in the S&P 500 Index ( SPX ). Even after the solid year-to-date run, technical indicators reveal further upside. QQQ tracks the Nasdaq-100 Index ( NDX ), providing investors exposure to many leading technology stocks. It comprises companies that are at the forefront of innovation and are focusing on attractive themes like cloud computing, augmented reality, mobile payments, streaming services, and electric vehicles. The top three sectors that QQQ offers exposure to are tech, consumer discretionary, and healthcare, with the tech sector stocks accounting for nearly 66% of the ETF. Microsoft ( MSFT ), Apple ( AAPL ), and Amazon ( AMZN ) are the top three holdings of QQQ. It is interesting to note that QQQ has outperformed the S&P 500 Index in nine of the last 10 years. Furthermore, QQQ has a low expense ratio of 0.20%, which makes it an attractive ETF investment. What do Technical Indicators Signal? QQQ is a Buy based on TipRanks’ easy-to-understand summary signals that combine the moving averages and technical indicators into a single, summarized signal. According to TipRanks’ Technical Analysis tool, the Invesco QQQ Trust ETF’s 50-Day EMA (exponential moving average) is 314.21, while its price is $331.12, making it a Buy. Further, QQQ’s shorter duration EMA (20-day) also signals a bullish trend. Aside from technical indicators, analysts’ consensus also indicates further upside. As per 1,697 analysts providing ratings on QQQ's Holdings, the ETF is a Moderate Buy and the average price target of $365.90 implies 10.5% upside. Further, of the 1,697 analysts offering recommendations on QQQ’s 102 holdings, 66.65% have a Buy rating, 29.4% have a Hold rating, and nearly 4% have a Sell rating. Overall, QQQ is a Buy as per technical indicators and Wall Street analysts. Moreover, according to TipRanks’ Smart Score System, QQQ has a smart score of 8 out 10, which indicates that the ETF could outperform the broader market over the long term. Disclosure

Guru Fundamental Report for MSFT - Warren Buffett

3 years 5 months ago
Below is Validea's guru fundamental report for MICROSOFT CORP (MSFT). Of the 22 guru strategies we follow, MSFT rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitabili

Is It Too Late to Buy Alphabet Stock?

3 years 5 months ago
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) has had a banner year so far in 2023, riding the wave of a broad recovery among technology stocks. Shares of the search giant are up 35% so far this year, roughly five times the 7% gains of the S&P 500. This is in stark contrast to the

WTAI: This Tiny AI ETF Could be a Hidden Gem

3 years 5 months ago
Advances in artificial intelligence (AI) have captured the imagination of the market and the general public alike in 2023, so it’s no surprise that AI-focused ETFs are enjoying solid year-to-date gains. With just $13 million in assets under management (AUM), the WisdomTree Artificial Intelligence and Innovation Fund ( BATS:WTAI) could be a hidden gem among these funds. Here’s why there’s plenty to like about this tiny, under-the-radar ETF.  AI is Just Getting Started WisdomTree writes that AI “is a transformative megatrend that has the potential to influence nearly all aspects of how we live and work globally in the years to come.”  And while AI offers plenty of long-term growth potential, it’s also being used in plenty of applications that are impacting our lives and businesses today -- whether it’s chatbots like ChatGPT, self-driving technology in cars, industrial automation, or workflow automation software.  Legendary investor Stanley Druckenmiller, who reportedly returned 30% annually over a 30-year timeframe while running Dusquense Capital, recently said that AI could be “every bit as impactful as the internet.” He also said that while he believes we are in for a “hard landing” economically, AI leaders like Nvidia ( NASDAQ:NVDA ) and Microsoft ( NASDAQ:MSFT ) could be “unbelievable opportunities” coming out of a hard landing. Further, he noted that even if there is a major recession, Nvidia's opportunity in AI is so compelling that he's not convinced that Nvidia’s share price will go down, even though it sports a high price-to-earnings multiple. Thoughtful Diversification WTAI offers investors a diversified and comprehensive way to gain exposure to AI. Not only does it hold 76 different stocks, but it’s also not overly concentrated toward its top positions like some other AI-themed ETFs. Its top 10 holdings make up just 22.6% of the fund, which means that investors aren’t left overly exposed to the ups and downs of a few large holdings. Top position Nvidia accounts for just a 3% weighting, which is reasonable.  Another thing I like about WTAI’s holdings is that it invests across a wide-ranging swath of today’s AI universe. WisdomTree says that the WTAI ETF "seeks to offer precise access to the AI megatrend through direct investment in publicly listed firms all over the globe that are focused on capitalizing on AI in a diverse array of technologies and applications.” WTAI places its investment focus in AI across four key areas -- AI software, semiconductors, hardware (which would include the likes of autonomous vehicles, drones, robotics, and industrial automation), and what it calls “innovation,” an all-encompassing category that could include any company using AI to disrupt existing industries.  Below, you’ll find a snapshot of WTAI’s top holdings using TipRanks’ holdings tool, which gives investors a comprehensive overview of an ETF’s top holdings and their characteristics. Semiconductors are crucial for powering AI applications, and you’ll find plenty of leading semiconductor names here, like Nvidia, Taiwan’s Alchip Technologies, Advanced Micro Devices ( NASDAQ:AMD ), and Lattice Semiconductor ( NASDAQ:LSCC ).  Nvidia is a semiconductor leader when it comes to AI, with some sources estimating it has up to an 85% share of the GPU market, but don’t count out the likes of AMD, which Morgan Stanley ( NYSE:MS ) analyst Joseph Moore recently said could have an opportunity within AI that is multiple times larger than originally anticipated. Semiconductor fabrication companies like Taiwan Semiconductor ( NYSE:TSM ) and ASML Holding N.V. ( NASDAQ:ASML ) also have a place in the top 10 here, as AI wouldn’t be possible without these companies manufacturing the chips behind it for the likes of Nvidia and Advanced Micro Devices.  WTAI also holds the mega-cap tech names, like holding Meta Platforms ( NASDAQ:META ), and further down the list, Microsoft, Alphabet ( NASDAQ:GOOGL ), and Amazon ( NASDAQ:AMZN ), which are all making exciting advances in AI technology of their own. The portfolio also includes software companies like ServiceNow ( NYSE:NOW ) and UiPath ( NYSE:PATH ) that utilize AI within their offerings in order to help customers streamline and automate their workflows. An additional thing you'll notice about WTAI's top holdings is that they have some very strong Smart Scores. The Smart Score is TipRanks’ proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The result is data-driven and does not require any human intervention. A Smart Score of 8 or above is the equivalent of an Outperform rating. Nvidia, C3.Ai ( NASDAQ:AI ), Lattice Semiconductor, Cadence Design Systems ( NASDAQ:CDNS ), and ASML lead the way with 'Perfect 10' Smart Scores. Meanwhile, AMD and Infineon Technologies ( XETRA:IFX ) also have Outperform-equivalent ratings, with Smart Scores of 8 and 9, respectively. Is WTAI Stock a Buy, According to Analysts? Analysts are also bullish on WTAI stock, giving it a Moderate Buy rating. Of the 886 ratings on WTAI, 70.43% are Buys, 23.36% are Holds, and 6.21% are Sells. The average WTAI stock price target of $19.97 implies upside potential of 18.1% from current levels. The lowest price target, $15.90, is not too far below the ETF’s current price of $16.91, implying that while WTAI harbors solid upside potential, the downside could be limited from here.  Reasonable Expense Ratio WTAI has a reasonable expense ratio of 0.45%. While this isn’t as cheap as one would expect from a low-cost, broad-market index fund, this is at least reasonable for a specialized, thematic ETF like this. While it's a bit higher than I would normally like to see, when looking at a number of other popular AI-themed ETFs using TipRanks’ ETF comparison tool, WTAI has the lowest expense ratio of the bunch, narrowly edging out the iShares Robotics and Artificial Intelligence Multisector ETF ( NYSEARCA:IRBO) and coming in much lower than several other prominent names.  TipRanks users can use the comparison tool to easily compare up to 20 stocks or ETFs on a wide variety of customizable key criteria, such as price, Smart Scores, past performance, AUM, and much more. A Strong Choice for Investing in the AI Megatrend  One risk that investors should be aware of is that at $13 million in AUM, WTAI is a very small ETF, which could make it more volatile than larger ETFs. However, it also has enough daily trading volume that liquidity shouldn’t be an issue for the average retail investor.   In summary, with a reasonable expense ratio (especially when compared to other AI-themed ETFs) and a well-diversified portfolio of holdings that encompasses all aspects of the AI space, WTAI looks like a strong choice for investors who want to gain exposure to this powerful long-term megatrend.  Disclosure

Advisors Rotating Into These 2 Equal Weight Sector ETFs

3 years 5 months ago
Two of Invesco’s equal-weight sector ETFs have seen significant flows recently as advisors allocate to sectors positioned to outperform. Many advisors utilize sector rotation strategies as a way to generate alpha for clients. Nearly 27% of advisors recently polled said their approach to sector allocation is to rotate sectors that they believe will outperform the [...] Read more at ETFtrends.com.

SPY ETF: A Shortcut to the Top 500 U.S. Stocks

3 years 5 months ago
There are hundreds or thousands of famous names for stock investors to choose from, but what if you could get immediate exposure to 500 top U.S. stocks? It's possible with the SPDR S&P 500 ETF Trust ( NYSEARCA:SPY) , and you can own this fund without paying hefty fees. I'm bullish on the SPY ETF because it has an excellent track record of providing returns to shareholders over the long term. SPY stock is provided and managed by State Street ( NYSE:STT ), and it's designed to track (i.e., closely follow) the S&P 500 ( SPX ) index. It's been around since 1993, which makes SPY the first publicly-listed U.S. exchange-traded fund (ETF). Believe it or not, the SPY ETF represents over $380 billion worth of assets under management (AUM). Of course, being the first and biggest doesn't necessarily make SPY the best U.S. ETF. So, let's see what else sets SPY apart from lesser entrants in the ETF space. Instant Diversification is Easy with the SPY ETF If you don't have the desire or the know-how to pick individual stocks, you can simply let the SPY ETF's fund managers do the legwork on your behalf. This fund provides immediate and convenient diversification for your portfolio, and SPY can be bought and sold within many types of investment accounts, including some retirement accounts. Like the S&P 500 itself, the SPY ETF represents a basket of 500 companies across a broad range of market sectors, from information technology to health care, to consumer discretionary, financials, and more. Be aware, though, that not all of these categories are represented equally; this is a weighted index fund, meaning some sectors and companies have more influence than others do in the SPY ETF. Notably, the information technology sector comprises around 26% of the weight of the SPY ETF. So, if you're going to buy and hold SPY, you'll definitely want to be bullish on technology names like Apple ( NASDAQ:AAPL ), which has a 7.14% weighting in SPY; Microsoft ( NASDAQ:MSFT ), which has a 6.25% weighting; and Amazon ( NASDAQ:AMZN ), which has a 2.68% weighting in the fund. SPY is a Historical Winner with Low Fees While having a mix of 500 stocks helps to reduce the volatility of the SPY ETF, there will still be ups and downs. Yet, if you check the long-term chart of SPY, you'll find that historically, it has always recovered from its downturns (though we should bear in mind that past performance doesn't guarantee future results). Also, the SPY ETF pays a 1.56% annual dividend yield, so that should enhance investors' returns over the long run. The dividend payments are issued on a quarterly basis, and some shareholders like to reinvest the dividends into more SPY shares in order to achieve a compounding effect. Here's my favorite feature of the SPY ETF, though -- the rock-bottom fees. Believe it or not, SPY's annual gross expense ratio is just 0.09%. In other words, the SPY ETF's investors pay less than 1/10 of a percent per year for all of the fund managers' hard work and due diligence -- not a bad deal, wouldn't you agree? Is SPY Stock a Buy, According to Analysts? On TipRanks, SPY earns a Moderate Buy consensus rating based on the ratings of 6,168 analysts. 59% of ratings are Buys, while 35.51% are Holds and just 5.5% are Sells. The average SPY stock price target of $469.96 implies 13.2% upside potential. Conclusion: Should You Consider SPY ETF? If you'd rather let someone else handle the business of picking large-cap U.S. stocks on your behalf, the SPY ETF is definitely worth considering. With SPY, you can get fast exposure to a broad range of well-known businesses. Plus, investors can collect dividend payouts every quarter. So, as long as you don't mind giving extra weight to tech names in your portfolio, the SPY ETF is a great way to delve into the wide world of American stocks. Disclosure

Noteworthy Wednesday Option Activity: MSFT, SPLK, AMZN

3 years 5 months ago
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Microsoft Corporation (Symbol: MSFT), where a total volume of 329,995 contracts has been traded thus far today, a contract volume which is representative of app

SPY, KBUY: Big ETF Inflows

3 years 5 months ago
Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the SPDR S&P 500 ETF Trust, which added 12,350,000 units, or a 1.4% increase week over week. Among the largest underlying components of SPY, in m
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