Credit: Shutterstock photoWith Apple (Nasdaq: AAPL) going gangbusters and lifting many other tech firms with it, the S&P Global Technology Index Fund( IXN ) may be a great idea.
IXN's assets are weighted toward large-cap global tech companies. Other top holdings include Microsoft (Nasdaq: MSFT) , IBM ( IBM ) and Google (Nasdaq: GOOG) . The fund is also comprised of big-name international computer hardware, software, semiconductors, Internet and IT service firms. The holdings in this exchange-traded fund ( ETF ) collectively have a market cap of $2.9 trillion (as of December 31, 2009).
There are other large-cap technology ETFs that seek to replicate the performance of the information technology sector, but IXN is unusual because of its strong international focus. Of the 118 companies currently in IXN's portfolio, 25% are located abroad, primarily in Japan, Taiwan and South Korea. This international diversification means the ETF would be less affected then a purely domestic fund if there were a drop in U.S. tech spending.
The ETF has a minimal yield of 0.4%. At 0.48%, the ETF has a slightly lower expense ratio than other high tech funds like the SPDR S&P International Technology ( IPK ) or WisdomTree International Technology ( DBT ) .
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Double-Digit Trading
To get an even bigger piece of the tech pie, check out my favorite individual tech pick in this week's issue of Double-Digit Trading. There you'll find a detailed fundamental and technical analysis of a stock in the IXN fund which may be poised for more than +20% gains.
Disclosure: Melvin Pasternak does not own shares of any security mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
