Despite some volatility, tech stocks are trouncing the broader market this year as top-performing tech funds score double-digit gains.
ETFMG Prime Cyber Security (HACK) leads the pack with a 19.8% year-to-date gain through May 9, according to Morningstar Direct. That’s far ahead of the S&P 500’s 1.5% advance. The ETF lost 2% Friday, but remains just below its all-time highs.
The $1.5 billion fund tracks the Prime Cyber Defense Index, which is composed of companies providing hardware, software, consulting and services to defend against cybercrime. Stocks in the index are screened for liquidity. HACK counts CommVault Systems (CVLT), Carbonite (CARB), CyberArk Software (CYBR) and Palo Alto Networks (PANW) among top holdings in the 46-stock portfolio.
First Trust Dow Jones Internet (FDN) is next with a 19.6% YTD gain. The $7.8 billion fund comprises companies that generate at least half their revenue from internet commerce or services. The fund was last featured in this ETF Leaders column May 4, as FDN tested its 50-day moving average. Shares have since rebounded strongly and are extended from the line. But they are still in buy range from later entries at a handle (127.75) 132.09 (left-side high of base). Amazon, Facebook and Netflix were its top three holdings as of May 10.
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In third place: iShares North American Tech-Software (IGV) with an 18.8% YTD return. IGV closed Friday at 183.30, above a 179.35 entry. U.S. software makers accounted for 98% of the $1.7 billion fund, while Canada-based companies made up the rest. Its top five holdings: Adobe Systems (ADBE), Salesforce.com (CRM), Microsoft (MSFT), Oracle (ORCL) and Activision Blizzard (ATVI) represented 40% of the 59-stock portfolio.
Another cybersecurity ETF, First Trust Nasdaq Cybersecurity (CIBR), came in fourth with a 17.1% gain. The $621.7 million fund is 2% off its Thursday peak. Its top holdings include Palo Alto, Akamai Technologies (AKAM) and Symantec (SYMC). Companies making the underlying Nasdaq CTA Cybersecurity Index must meet market cap, dollar trading volume and free float minimums.
The rest of the ETFs making the list yielded YTD gains between about 10% and 16%.[“Source-investors”]