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Markets were in a bit of a slump this morning, as most news outlets concentrated on the spread of the Covid-19 Delta variant across the globe. West Texas oil prices dropped to just over $65 a barrel, the lowest in some time, as concerns about fresh lockdowns in China weighed on demand sentiment. The US Jobs report did surprise to the upside last week, coming in at 943k jobs vs 845k expected, but these are delayed reports – it could be a different story for August if things start to slow down. There is plenty to watch for this week on the economic side, but this week we are bringing you the top tech ETFs, which is a place you may be able to ‘hide out’ in as more pressure is put on reopening stocks. Q.ai’s deep learning algorithms have identified several of the top US Tech Smart Beta ETFs based on fund flows over the last 90-days, 30-days, and 7-days. We’ve rated three ETFs as Best, two as Good, and 5 as Caution.
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iShares PHLX Semiconductor ETF (SOXX)
The first Best-rated ETF for this month is the iShares PHLX Semiconductor ETF. This ETF aims to follow and track the overall performance of US based companies involved in semiconductor production and equipment. With a worldwide semiconductor shortage, this is definitely the type of ETF you want to keep your eyes on. The ETF is on the smaller side with $7,030,260,604.50 AUM. The ETF has also seen positive fund flows, with a 90-day fund flow of $284,922,885.00, 30-day fund flow of $420,181,875.00, and 1-week fund flow of $68,713,605.00. The iShares PHLX Semiconductor ETF also has a net expense ratio of 0.48% which is certainly on the pricier side.
VanEck Vectors Semiconductor ETF (SMH)
The next ETF that scored Best for the month according to our AI systems is the VanEck Vectors Semiconductor ETF. This ETF aims to follow and track the overall performance of companies involved in semiconductor production and equipment. This ETF is unique compared to other semiconductor-focused ETFs, because their holdings are not limited to exclusively US companies. Based on AUM, it is on the smaller side with $5,506,542,351.64 AUM. It has seen negative fund flows of -$55,530,847.50 over the last 90-days, -$12,039,279.00 over the last 30-days, and -$82,922,019.00 over the last week. Its net expense ratio of 0.35% is relatively middle of the pack compared to other tech ETFs, but pricier than ETFs in different sectors.
Direxion Daily Semiconductors Bull 3x Shares (SOXL)
The Direxion Daily Semiconductors Bull 3x Shares is our final Best-rated ETF. This is a leveraged ETF with exposure to the semiconductor space. The ETF aims to receive 300% or 3X the performance of the PHLX Semiconductor Sector Index. In terms of AUM, the ETF is on the smaller-side with $5,030,636,169.18 AUM. The ETF has also seen negative fund flows, with a 90-day fund flow of -$1,568,877,450.00, 30-day fund flow of -$663,510,250.00, and 1-week fund flow of -$488,781,700.00. The ETF also has a net expense ratio of 1.02% which is the priciest on this list.
Global X Nasdaq 100 Covered Call ETF (QYLD)
The Global X Nasdaq 100 Covered Call ETF is our first of two Good-rated ETF this month. The Global X Nasdaq 100 Covered Call ETF follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index. The ETF is also on the smaller side with $2,368,270,459.69 AUM. The ETF has seen positive fund flows, with a 90-day fund flow of $1,221,585,200.00, 30-day fund flow of $440,979,400.00, and 1-week fund flow of $101,093,800.00. The ETF also has a net expense ratio of 0.6% which is quite pricey.
SPDR NYSE Technology ETF (XNTK)
The SPDR NYSE Technology ETF is our second ETF rated Good this month. This ETF corresponds generally to the total return performance of the NYSE Technology Index, which is composed of 35 leading US-listed technology-related companies. The ETF is smaller-sized with $697,090,120.09 AUM. It has seen negative fund flows over the last 90 days of -$14,428,883.90 and has a net expense ratio of 0.35%.
Invesco QQQ Trust (QQQ)
The Invesco QQQ Trust comes in as our first Caution-scored ETF for the month. This ETF is considered to be the benchmark ETF that tracks the NASDAQ
Technology Select Sector SPDR Fund (XLK)
The second Caution-rated ETF is the Technology Select Sector SPDR Fund. This ETF seeks to track the performance of the technology and telecom sector of the S&P 500. It has $40,972,013,917.74 AUM and is medium-sized. It has also seen positive fund flows, with a 90-day fund flow of $621,963,683.00, a 30-day fund flow of $718,864,077.70, and a 1-week fund flow of $115,225,804.20. Its net expense ratio of 0.12% is also considerably cheaper than other tech ETFs.
iShares US Technology ETF (IYW)
The iShares US Technology ETF is our next ETF rated Caution this month. This ETF aims to give investors exposure to an index of US-based tech stocks focused on electronics, computer software and hardware, and informational technology. Its Top 5 holdings are Apple
Invesco S&P 500 Equal Weight Technology ETF (RYT)
The next Caution-rated ETF is the Invesco S&P 500 Equal Weight Technology ETF. This ETF is based on the S&P 500 Equal Weight Information Technology Index. It is smaller-sized with $2,580,512,232.00 AUM. The ETF has seen mixed fund flows, with a 90-day fund flow of $44,951,119.20, a 30-day fund flow of $14,667,625.80, and a 1-week fund flow of -$51,053.30. With a net expense ratio of 0.40%, this is one of the more expensive ETFs on the list.
First Trust NASDAQ Technology Dividend Index Fund (TDIV)
The First Trust NASDAQ Technology Dividend Index Fund is the final ETF on our Caution-rated ETFs this month. The First Trust NASDAQ Technology Dividend Index Fund seeks that correspond generally to the price and yield of an equity index called the NASDAQ Technology Dividend Index. The ETFs AUM sits at $1,538,811,434.12 and is on the smaller size this week. The ETF has seen exclusively positive fund flows, with a 90-day fund flow of $43,934,913.00, a 30-day fund flow of $17,289,676.00, and a 1-week fund flow of $5,809,309.50. With a net expense ratio of 0.50%, it is on the pricier side.
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