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MARKETS LIVE BLOG:

STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

Technology ETF (RYT) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, Invesco S&P 500 Equal Weight Technology ETF RYT is probably on radar now. The fund just hit a 52-week high, and is up roughly 41% from its 52-week low price of $131.15/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

RYT in Focus    

This fund offers equal weight exposure to the technology sector with key holdings in IT services, semiconductors & semiconductor equipment, and software. It charges 40 bps in fees per year (see: all the Technology ETFs here).

Why the Move?

The technology corner of the broad U.S. stock market has been an area to watch lately ahead of the key earnings season. Q2 earnings for the sector are expected to decline about 8.9%. However, 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 has been fueling growth in the space. 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.

More Gains Ahead?

Currently, RYT has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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Invesco S&P 500 Equal Weight Technology ETF (RYT): ETF Research Reports
 
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Zacks Investment Research
 
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