After a bad year, the tech sector shows a strong recovery in early 2023. Expectations that the Federal Reserve will soon end its fight against inflation boosted risk appetite. Optimism about keeping inflation under control has forced investors to buy beaten tech stocks.
The tech-heavy Nasdaq Composite index rose 2.6% at the start of the year, beating other major indexes. The S&P 500 and Dow Jones Industrial Average were up 2% and 1.7% respectively. So technology ETFs are leading higher, Valkyrie Bitcoin Miners ETF (WGMI – free report) attracted attention with a rise of 40.5%. This is followed by an increase of 33.4%. VanEck Digital Asset Mining ETF (dam – free report), 30.1% Global X Blockchain ETF (BKCHMore – free report), 29.1% VanEck Vectors Digital Transformation ETF (DAPPs – free report) and 28% Bitwise Crypto Industry Innovators ETF (Bitk – free report).
Inflation is easing and consumer confidence is rising. The latest jobs data showed slowing wage growth, prompting investors to hope the Fed could ease rate hikes, boosting tech stocks as a result.
The market expects the Fed to signal the end of the rate hike cycle soon. A slowdown in wage growth and a decline in US service activity in December signaled a slowdown in the US economy, raising hopes that the Fed’s hawkish stance will ease. The latest data show that traders are betting on a 25 bps rate hike at the central bank’s upcoming policy meeting in February, with interest rates set to fall just below 5% by June. is seen as (reading: Six Sector ETFs Showing Promise After December Jobs Data).
After a big sell-off, technology stocks are very cheap at their current valuations. The top 10 tech stocks have lost a combined $4.6 trillion in market capitalization in 2022 as interest rates rose and growth prospects weakened. The so-called FAAMG cohort — Facebook’s parent company Meta Platforms Inc. (meta – free report), Amazon.com Inc. (AMZN – free report) , Apple (AAPL – free report), Microsoft (MSFTMore – free report) and Alphabet Inc. (Google – free report) — lost 38% of its market value.
Additionally, the tech sector’s rise is confirmed by the Zacks sector rank. Top 30%, more than 60% of the industry ranked in the top 37%. This suggests that the sector’s outperformance will continue in the coming months.
Valkyrie Bitcoin Miners ETF (WGMI – free report)
The Valkyrie Bitcoin Miners ETF invests at least 80% of its net assets (plus borrowings for investment purposes) and at least 50% of its revenues or profits in bitcoin mining operations and/or companies engaged in bitcoin mining dedicated chips, hardware, and provide software or other services; The Valkyrie Bitcoin Miners ETF is his actively managed ETF holding 24 shares in a basket with a 0.75% expense ratio.
The Valkyrie Bitcoin Miners ETF has amassed $1.7 million in asset base and is trading at an average of 5,000 shares per day.
VanEck Digital Assets Mining ETF (dam – free report)
The VanEck Digital Assets Mining ETF provides exposure to companies participating in the digital asset mining economy by tracking the MVIS Global Digital Assets Mining Index. There are 20 stocks in the basket, each with a share of less than 9%, so you have a well-diversified portfolio.
The VanEck Digital Assets Mining ETF has raised $700,000 in assets since its launch in May. The annual fee is 50 bps and the trading volume averages less than 1,000 shares per day (read: 5 Best ETF Ideas for Your Portfolio in 2023).
Global X Blockchain ETF (BKCHMore – free report)
The Global X Blockchain ETF will benefit from the increasing adoption of blockchain technology, including companies in digital asset mining, blockchain and digital asset trading, blockchain applications, blockchain and digital asset hardware, and blockchain and digital asset integration. We aim to invest in companies that can The Global X Blockchain ETF holds 24 shares in its basket, with the top three companies allotted his double-digit allocation.
The Global X Blockchain ETF has amassed $41.3 million in asset base and is trading an average of 124,000 shares per day. We charge an annual fee of 50 bps.
VanEck Vector’s Digital Transformation ETF (DAPPs – free report)
The VanEck Vector Digital Transformation ETF offers exposure to companies at the forefront of digital asset transformation, including digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology, or services to digital asset operations. It is intended to A digital asset infrastructure business or enterprise that uses digital assets to facilitate commerce. The VanEck Vector Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 20 stocks in its basket.
The VanEck Vector Digital Transformation ETF has an annual fee of 50 bps and an average daily volume of 94,000. DAPP’s asset base reached $19 million.
Bitwise Crypto Industry Innovators ETF (Bitk – free report)
The Bitwise Crypto Industry Innovators ETF provides exposure to companies leading the new crypto economy. This is for companies involved in servicing the cryptocurrency market, including cryptocurrency mining companies, cryptocurrency mining equipment suppliers, cryptocurrency financial services companies, or other financial institutions that primarily serve cryptocurrency-related customers. Tracks the Bitwise Crypto Innovator 30 Index that measures performance. : Tech ETF 2022 Low-Down: Dividend Wins, Crypto Lose).
With 27 shares in its basket, the Bitwise Crypto Industry Innovators ETF concentrates on the top three companies, each with near double-digit exposure. They charge an annual fee of 85 bps from investors and trade an average of 148,000 shares per day. The Bitwise Crypto Industry Innovators ETF has collected $36.5 million in its asset base.
