California-based tech giant Oracle (
) was in focus after it reported disappointing third quarter
revenues and earnings driven by weak sales of new software
licenses and cloud software subscription.
Close on the heels of this news, ORCL was pushed down by about
9.7% in a single trading session, the biggest drop since Dec
2011. Unsurprisingly this also led to a slump in many technology
. This has obviously been particularly true for those funds that
have major holdings in ORCL, and those that have a big focus on
large caps or software firms in general.
The recently launched
First Trust NASDAQ Technology Dividend Index Fund (
recorded the largest decline of 2.42% on the day. The fund
follows the NASDAQ Technology Dividend Index, holding 79
securities in its basket.
Of those firms, ORCL takes the seventh spot, making up roughly
4.04% of assets. This is a high cost product in the tech space
with AUM of $75.3 million. The ETF is unpopular yet still up
8.64% year-to-date (read:
Three Tech ETFs Still Going Strong
Other top losers on the day were
iShares Dow Jones U.S. Technology Sector Index Fund (
Vanguard Information Technology Index Fund (
, which lost 1.36% and 1.26%, respectively, in the single trading
day. Being the popular funds, these products have an impressive
asset base of $1.9 billion and $2.8 billion,
IYW tracks the Dow Jones US Technology index, holding 137
stocks while VGT tracks the MSCI US Investable Market Information
Technology 25/50 Index, holding 415 securities. The former
charges a higher fee of 46 bps a year while the latter charges a
low fee of 14 bps a year.
Of the major holdings, Oracle takes the fifth position in the
portfolio of both the funds with 5.39% of IYW and 4.5% of VGT.
Still, the iShares product is up 3.29% and Vanguard product added
4.34% year-to-date (see more in the
Apart from these, the ultra-popular
Technology Select Sector SPDR Fund (
also saw a price decline of 1.12%. The fund follows the S&P
Technology Select Sector Index and holds 80 securities in total.
Oracle takes the seventh position in the basket with 4.48% of the
assets. With AUM of over $9.4 billion, the ETF gained 3.92% so
far in the year and charges investors 18 bps in fees per
iShares S&P North American Technology-Software Index
lost around 1.04%. This ETF provides exposure to companies
specializing in software, holding 61 securities in total (read:
New Leadership in the Tech ETF Space?
). Unsurprisingly, ORCL takes the second spot, making up roughly
8.5% of assets.
The fund managed assets worth $729.6 million and has delivered
excellent returns of 9.06% so far in the year despite the fall.
The product charges a fee of 48 bps annually.
The other unleveraged tech ETFs - PowerShares Dynamic Software
), iShares S&P Goldman Sachs Technology Index Fund (
), iShares S&P Global Technology Index Fund (
) and First Trust ISE Cloud Computing Index Fund (
) were also down 0.93%, 1.32%, 1.20% and 0.98%, respectively, on
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ISHARS-SP SFTWR (IGV): ETF Research Reports
ORACLE CORP (ORCL): Free Stock Analysis
FT-NDQ TECH DIF (TDIV): ETF Research Reports
VIPERS-INFO TEC (VGT): ETF Research Reports
SPDR-TECH SELS (XLK): ETF Research Reports
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