7 Top-Ranked Tech ETFs On Unstoppable Rally

The technology sector is on fire given a deluge of upbeat earnings results and high hopes of the tax reform getting clearance. In particular, five technology stocks, touted as FAAMG – Facebook (FB – Free Report) , Amazon (AMZN – Free Report) , Apple (AAPL – Free Report) , Microsoft (MSFT – Free Report) , and Alphabet (GOOGL – Free Report) – led to skyrocketing prices.

Additionally, a string of reports from other tech players like International Business Machines (IBM – Free Report) , and Intel INTC added to the strength.

Total earnings from 85% of the sector’s total market capitalization reported so far are up 22.4% on 9.3% higher revenues with 81.8% of the companies beating on earnings and 86.4% exceeding top-line estimates. While the beat ratios are in line with the last reported quarter, the growth rates are encouraging and higher than the recent quarters.

Trump’s proposed tax reform policy, which could allow companies to bring back cash held overseas at lower rates, are fueling exceptional growth in the sector. Per Moody’s, the top five U.S. hoarders are from the technology sector, namely Apple, Microsoft, Alphabet, Cisco (CSCO – Free Report) and Oracle (ORCL, which hold 88% of their money overseas.

Further, the buzz that communications’ chipmaker Broadcom (AVGO) is looking to make a bid of more than $100 billion for the smartphone chip supplier Qualcomm (QCOM – Free Report) . The combination wouldmark the biggest technology acquisition in history. This has triggered further rally in the semiconductor stocks.

If these aren’t enough, the sector has a solid Zacks Rank in the top 25%, suggesting robust growth prospects in the coming months.

Given this, tech ETFs have been hitting all-time highs in recent trading sessions, easily crushing PowerShares QQQ (QQQ – Free Report) by a wide margin in the past 10 days. Below, we have presented a bunch of those that will continue to outperform in the coming months given that these have potentially superior weighting methodologies and a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).