Overnight, $Nasdaq (NDAQ.US)$ and $S&P 500 Index (.SPX.US)$ ended green (thanks to tech) but Small Caps and $Dow Inc (DOW.US)$ were red (with the former hit hard). Since the release of the US CPI data, The Dow Jones Industrial Average, which represents value stocks, has declined, while Nasdaq is surging as the new 'defensive' vehicle.
The “breadth” was abysmal once again, as Cap-weighted Nasdaq continued to dramatically outperform the Equal-weighted index (one of the biggest NDX-NDXE spreads in years today), with mega-cap tech dominating performance.
This week, members of the trillion-dollar market cap club, $Apple (AAPL.US)$, $Microsoft (MSFT.US)$, and $NVIDIA (NVDA.US)$, continued to hit all-time highs, with Apple reclaiming the title of the most valuable company by market capitalization.
However, if you want to ride the AI wave and maintain a diversified portfolio, these ETFs can help you catch them all.
1. $Ishares Global Tech Etf (IXN.US)$
The iShares Global Tech ETF has risen 22% so far this year, and its top 10 holdings include mega-caps such as $Microsoft (MSFT.US)$, $Apple (AAPL.US)$, $NVIDIA (NVDA.US)$, $Taiwan Semiconductor (TSM.US)$ ,$Broadcom (AVGO.US)$, and $Qualcomm (QCOM.US)$.
2. $iShares US Technology ETF (IYW.US)$
$Microsoft (MSFT.US)$, $Apple (AAPL.US)$, $NVIDIA (NVDA.US)$, $Meta Platforms (META.US)$, $Broadcom (AVGO.US)$, $Alphabet-A (GOOGL.US)$, $Alphabet-C (GOOG.US)$, $Advanced Micro Devices (AMD.US)$, $Qualcomm (QCOM.US)$ and $Salesforce (CRM.US)$ are the top ten stocks, with the ten largest positions making up 67.51% of the portfolio.
3. $The Technology Select Sector SPDR® Fund (XLK.US)$
The Technology Select Sector SPDR Fund (XLK) has risen by more than 18% year-to-date and 84% from last year to date. XLK's largest holdings are from $Apple (AAPL.US)$ and $Microsoft (MSFT.US)$, each accounting for approximately 22%.
In addition, the ETF's top ten holdings also include $NVIDIA (NVDA.US)$, $Broadcom (AVGO.US)$, $Advanced Micro Devices (AMD.US)$, $Qualcomm (QCOM.US)$, $Salesforce (CRM.US)$, $Oracle (ORCL.US)$, $Adobe (ADBE.US)$, and $Applied Materials (AMAT.US)$.