Specialized Tech ETFs, around the World and in China

The main focus of the Technology theme is on clearly differentiated clusters -  specialized industries, mainly semiconductors and telecommunications, and the China & emerging markets Internet driven economy

• The 5 Semiconductors ETFs are grouped, at the high end of the range - both in performance and in volatility –  but the results of the individual funds reflect  great diversity in the competitive landscape. The category appears to remain optimistic …. and exposed

• The 5 Telecom ETFs have performed poorly in the past but recently gained investor interest – the weight of the industry in the tech sector is reason to keep track of the category, which could prove resiilent in case of a market reversal

• China (always dominant) and emerging markets ETFs are invested in companies relying on Internet content, e-commerce and social networks to meet explosive consumer expectations. Today's uncertain future will open investment opportunities...but not for the fainthearted...
  • Since the funds are market-cap weighted, Tencent , Alibaba , Baidu and Vipshop tend to dominate the selections

SPDR NYSE Technology ETF , an equal-weighted ETF that holds stocks of “35 leading U.S.-listed technology-related companies", is the benchmark of the selection