First Trust Technology AlphaDEX (ARCA: FXL)

First Trust Technology AlphaDEX (ARCA:FXL), Quote.Headers.trade-ideas

First Trust Technology AlphaDEX

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The Fund will normally invest at least 90 percent of its net assets (including investment borrowings) in the securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is part of the StrataQuant Series, a family of custom enhanced indices developed, maintained and owned by ICE Data Indices, LLC or its affiliates (IDI or the Index Provider). The Index Provider reserves the right to, at any time, change the number of stocks comprising the Index by adding or deleting one or more stocks, or replacing one or more stocks contained in the Index with one or more substitute stocks of its choice, if in the Index Providers discretion, such addition, deletion or substitution is necessary or appropriate to maintain the quality and/or character of the Index.

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Launched on 05/08/2007, the First Trust Technology AlphaDEX ETF (ARCA:FXL) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.

Is First Trust Technology AlphaDEX ETF a Strong ETF Right Now?

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S&amp;P 500 Sector Re-shuffling Likely To End Tech Dominance

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The Democratic “blue wave” in Washington D.C. took two months longer than many investors had anticipated, but it arrived this week when Democrats narrowly eked out a majority in the Senate. Following the Georgia runoffs, investors are once again searching for the best stocks and ETFs to own under Democratic leadership.

7 &#39;Blue Wave&#39; ETFs To Buy Following Democrat Senate Victories

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Launched on 05/08/2007, the First Trust Technology AlphaDEX ETF (ARCA:FXL) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
<h2>What Are Smart Beta ETFs?</h2>
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
<h2>Fund Sponsor &amp; Index</h2>
The fund is managed by First Trust Advisors. FXL has been able to amass assets over $1.24 billion, making it one of the larger ETFs in the Technology ETFs. Before fees and expenses, FXL seeks to match the performance of the StrataQuant Technology Index.
The StrataQuant Technology Index is a modified equal-dollar weighted index designed by the AMEX to objectively identify and select stocks from the Russell 1000 Index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX screening methodology.
<h2>Cost &amp; Other Expenses</h2>
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for FXL are 0.62%, which makes it on par with most peer products in the space.
FXL&#39;s 12-month trailing dividend yield is 0.41%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FXL, it has heaviest allocation in the Information Technology sector --about 80.90% of the portfolio --while Industrials and Telecom round out the top three.
Taking into account individual holdings, Palantir Technologies Inc. (class A) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pltr#NYSE">PLTR</a>) accounts for about 2.06% of the fund&#39;s total assets, followed by Godaddy Inc. (class A)&nbsp;and Cognizant Technology Solutions Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctsh#NASDAQ">CTSH</a>).
FXL&#39;s top 10 holdings account for about 18.47% of its total assets under management.
<h2>Performance and Risk</h2>
Year-to-date, the First Trust Technology AlphaDEX ETF has lost about -0.82% so far, and is up about 9.32% over the last 12 months (as of 09/09/2024). FXL has traded between $104.07 and $142.51 in this past 52-week period.
The ETF has a beta of 1.14 and standard deviation of 25.32% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Technology AlphaDEX ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
Technology Select Sector SPDR ETF (ARCA:XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (ARCA:VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $64.13 billion in assets, Vanguard Information Technology ETF has $70.17 billion. XLK has an expense ratio of 0.09% and VGT charges 0.10%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
<a href="https://www.zacks.com/stock/news/2333154/is-first-trust-technology-alphadex-etf-fxl-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2333154">To read this article on Zacks.com click here.</a>

<ul>
<li>S&amp;P 500 will&nbsp;<a class="editor-rtfLink" href="https://www.prnewswire.com/news-releases/sp-dow-jones-indices-and-msci-announce-revisions-to-the-global-industry-classification-standard-gics-structure-in-2023-301515447.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reclassify the</a>&nbsp;sectors of some significant shares in 2023.</li>
<li>Payment processing companies currently classified as tech firms would join the financial industry.&nbsp;</li>
<li>Other tech names providing outsourcing or human resources support would come under industrial stocks.</li>
<li>The dominance of tech stocks in the S&amp;P 500 would likely shrink following the changes,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-04-01/s-p-500-tweaks-to-cut-tech-s-weight-as-payment-firms-move-sector?sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.</li>
<li>The tech sector represented 28% of the S&amp;P 500, more than the weighting of the healthcare and consumer-discretionary sectors&#39; weighting.&nbsp;</li>
<li>Now&nbsp;Visa Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>),&nbsp;PayPal Holdings Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pypl#NASDAQ">PYPL</a>), and&nbsp;Mastercard Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) would shift from tech to the financial sector marking a significant impact on the sector ETFs that have hefty exposure to these companies an expert suggested.</li>
<li>Photo by sergeitokmakov via Pixabay</li>
</ul>

S&P 500 Sector Re-shuffling Likely To End Tech Dominance

The Democratic &ldquo;blue wave&rdquo; in Washington D.C. took two months longer than many investors had anticipated, but it&nbsp;arrived this week when Democrats narrowly eked out a majority in the Senate. Following the Georgia runoffs, investors are once again searching for the best stocks and ETFs to own under Democratic leadership.
Inflation And Rising Rates:&nbsp;Bank of America analyst Jared Woodard discussed several ETF ideas for investors looking to play the blue wave trade.
&ldquo;As we argued last fall, unified government clears the path for big fiscal packages to drive growth, inflation and bond yields higher,&rdquo; Woodard wrote in a note.
The biggest themes investors should consider are cyclical and value stocks that should benefit from rising inflation rates and stimulus-driven economic growth.
Woodard said energy stocks, clean energy stocks and materials stocks should all benefit from rising inflation rates. He recommends ETFs such as the Energy Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xle#NYSE">XLE</a>), the iShares Global Clean Energy ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/icln#NYSE">ICLN</a>) and the Materials Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlb#NYSE">XLB</a>).
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/21/01/19043314/6-key-economic-projections-for-2021">6 Key Economic Projections For 2021</a>
In addition, Woodard said a steepening yield curve should be good news for the bank ETFs such as the SPDR S&amp;P Bank ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbe#NYSE">KBE</a>). For investors looking for a more diversified financial sector play, the First Trust Financials AlphaDEX Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxo#NYSE">FXO</a>) is the financial sector fund with the highest weighting of bank stocks.
Infrastructure And Technology: Infrastructure spending may be one of the Joe Biden administration&rsquo;s top priorities, and Woodard said the Invesco S&amp;P 500 Eql Wght Industrials ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rgi#NYSE">RGI</a>) is the industrial ETF with the highest exposure to construction stocks.
Finally, Woodard recommends investing in technology ETFs that have relatively low exposure to the FAAMG group due to antitrust concerns. He recommends the First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxl#NYSE">FXL</a>), in which the FAAMG stocks have just a 4% weighting.
Benzinga&rsquo;s Take: While the Republican party is typically seen as the party of big business, the stock market has performed very well throughout history under Democratic leadership. Since 1948, the S&amp;P 500 has averaged a 14% annual return during years in which Democrats control the White House and both houses of Congress.

7 'Blue Wave' ETFs To Buy Following Democrat Senate Victories

First Trust, one of the fastest-growing issuers of exchange traded funds, added to its stable of fixed income funds last week with the debuts of the First Trust Short Duration Managed Municipal ETF (NYSE: FSMB) and the First Trust Ultra Short Duration Municipal ETF (NYSE: FUMB).
Both ETFs are actively managed.
<h3>What Happened</h3>
In recent weeks, some fixed-income ETFs with medium to longer durations have suffered outflows while investors have poured into short- and ultra-short duration funds.
&ldquo;Even as interest rates have moved higher this year, investor demand for tax-free income from municipal bonds continues to stand out,&rdquo; Ryan Issakainen, senior vice president and&nbsp;ETF strategist at First Trust, said&nbsp;<a href="https://www.ftportfolios.com/LoadContent/ge3uccbigwhy">in a statement</a>.
The First Trust Short Duration Managed Municipal ETF aims for a weighted average duration of one to three years.
&ldquo;The short duration focus of these funds seeks to reduce the impact of interest rate movements while maintaining current income, as short-term municipal bonds have historically been less sensitive to rising interest rates,&rdquo; according to First Trust.
<h3>Why It&#39;s Important </h3>
The Federal Reserve has raised interest rates three times this year and expectations are in place for a fourth rate hike in December, prompting many bond investors to embrace shorter-duration bond funds.
Municipal bonds are are tax-exempt at the federal level and, in many cases, at the state and local levels. That tax-exempt status boosts the appeal of municipal bonds for investors anticipating large tax bills, particularly those in high-tax states like California and New York.
The First Trust Ultra Short Duration Municipal ETF is expected to have a duration of less than one year.
&ldquo;The municipal securities team at First Trust sees ample investment opportunities in municipal bonds,&rdquo; according to the issuer. &ldquo;In their view, credit fundamentals are improving for many municipal bond issuers and taxable equivalent yields are attractive relative to other fixed-income asset classes.&rdquo;
<h3>What&#39;s Next </h3>
With the debuts of FSMB and FUMB, Illinois-based First Trust offers six actively managed tax-exempt bond ETFs.
FUMB&#39;s annual fee is 0.35 percent, or $35 on a $10,000 investment, while FSMB charges 0.45 percent.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12598108/an-ugly-october-punishes-a-slew-of-sector-etfs">These Sector ETFs Stunk In October</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12587709/global-x-plans-new-e-commerce-etf">A New E-commerce ETF Is Coming</a>

Bonds

New ETFs

A Pair Of Short-Duration ETFs Launch

The hot and soaring technology sector saw its worst day since Jun 9. The S&amp;P 500 tech sector dropped 2.6% on Nov 29 as a result of sector rotation, especially to financials.
	The dual news of Republicans moving closer to passing of the tax-reform legislation and accelerating U.S. economic growth raised the appeal&nbsp; of financial stocks. Investors flocked to these firms seen benefitting more from a potential reduction in the corporate tax rate. Most of the American tech giants pay lower taxes. According to S&amp;P Global data, tech sector pays an effective tax rate of 18.5% - the third lowest among U.S. large caps (see: <a href="https://www.zacks.com/funds/etfs/etf-categories/Technology-ETFs-16">all the Technology ETFs here</a>).
	Additionally, higher economic growth suggests rising interest rates and inflation, thereby leading to solid bank earnings potential on lending activity. &nbsp;
	Market Impact
	The tech rout has pushed Wall Street lower. The Nasdaq Composite Index was hit the hardest. The index declined as much as 2.2% on the day, marking the biggest one-day drop in more than three months. In particular, FAANG stocks, which were the biggest contributors to the tech rally this year, fell the most in 22 months with Netflix NFLX down 5.5%, Facebook FB down 4%, Amazon AMZN down 2.7%, Google parent Alphabet GOOGL down 2.4% and Apple AAPL down 2.1%.
	The drop in semiconductor stocks following Morgan Stanley&#39;s warning intensified the rout. Notably, Philly Semiconductor Index tumbled 4.4% - the biggest daily percentage slide since Dec 1. NVIDIA NVDA witnessed the biggest three-day sell off in 21 months, sliding 6.8% on Nov 29. This was followed by decline of 8.7% for Micron Technology MU, 8.7% for Lam Research LRCX and 7.7% for Applied Materials AMAT (read: <a href="https://www.zacks.com/stock/news/284292/semiconductor-etfs-recoil-on-morgan-stanley-warnings">Semiconductor ETFs Recoil on Morgan Stanley Warnings</a>).
	In the ETF world, Select Sector SPDR Technology ETF XLK shed 2.2% on the day compared&nbsp; with a loss of 0.05% for the broad market fund SPY and 1.7% for Nasdaq ETF QQQ. Semiconductor ETFs declined the most with PowerShares Dynamic Semiconductors Fund PSI and First Trust Nasdaq Semiconductor ETF FTXL plunging 5.6% and 5.1%, respectively.
	New Tech and Media ETF FNG offering exposure similar to investments in high-performing technology and media leaders as characterized by the FANG stocks acronym, shed 4.2% on the day. Other terrible performers were PowerShares Dynamic Software ETF PSJ, First Trust NASDAQ-100-Technology Sector IndexFund QTEC, iShares North American Tech-Software ETF IGV andFirst Trust Technology AlphaDEX Fund FXL. These are down more than 3.5%. PSJ and IGV target software industry while QTEC and FXL offer broad exposure to the tech sector.
	Sell-Off: A Solid Buying Opportunity
	Notwithstanding the slide, technology sector is still the best performing sector this year and will&nbsp; maintain the trend heading into the New Year, given expectations of strong earnings, improved overseas industry demand, and innovative technologies.
	The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality devices, and artificial intelligence will continue to fuel growth of the sector. With the global economy gathering strong momentum, technology stocks will continue to outperform and be less susceptible to interest rates or deregulation.
	Though the tech titans will benefit less from corporate tax cuts, they hoard huge cash overseas and are poised to benefit the most from Trump&#39;s repatriation policy. Further, a pick-up in the economy and better job prospects will provide a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle (read: <a href="https://www.zacks.com/stock/news/281883/7-topranked-tech-etfs-on-unstoppable-rally">7 Top-Ranked Tech ETFs on Unstoppable Rally</a>).
	Moreover, after a brutal decline, most of the tech stocks have become cheap at current levels, offering a nice entry point for investors. As a result, investors could do some bargain hunting on the stocks or ETFs that have become value picks. The ETFs mentioned above have a Zacks Rank # 1 (Strong Buy) or 2 (Buy), suggesting outperformance in the coming months.
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Futures

AAPL

AMZN

GOOGL

NFLX

NVDA

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

PowerShares ETF Tst Dynamic Software Portfolio

First Trust NASDAQ-100 Technology Index Fund

QTEC

Tech ETFs And Stocks Tumble: Time To Buy?

Here is the ETF Professor's ETF Watch List for Friday, September 27, 2013.

Give the U.S. Oil Fund (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>) a look.

The First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) has appeal.

The PowerShares Dynamic Food &amp; Beverage ETF (NYSE: <a class="ticker" href="/stock/pbj#NYSE">PBJ</a>) could be worth a look.

The Market Vectors Junior Gold Miners (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>) should be in play as always.

Emerging markets plays of the day: Market Vectors Russia ETF (NYSE: <a class="ticker" href="/stock/rsx#NYSE">RSX</a>), Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>) and the iShares MSCI Emerging Markets Minimum Volatility ETF (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>).

Forex play of the day: ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>).

Bond play of the day: SPDR Barclays Capital High Yield Bond ETF (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>).

Broad U.S. Equity ETFs

Short Ideas

Specialty ETFs

Emerging Market ETFs

Currency ETFs

Pre-Market Outlook

EEMV

GDXJ

Market Vectors Russia ETF Trust Shares of Beneficial Interest

ETFs to Watch September 27, 2013 (GDXJ, JNK, RSX)

On the surface, it would appear to be a disappointing year for technology sector ETFs. The Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is up a mere 9.9 percent year-to-date, a performance that trails the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) by 670 basis points.

	Of the nine sector SPDRs ETFs, XLK ranks seventh on a year-to-date basis and is being kept out of the last place by the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) and the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the latter of which <a href="http://www.benzinga.com/markets/bonds/13/09/3883009/rising-rates-could-make-these-etfs-betray-seasonal-trends">has wilted in the face of rising interest rates</a>.

	What is disappointing about the performance of the cap-weighted, large cap-focused XLK is that when stripping out AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) to focus on the pure tech names among the ETF's top-10 holdings, five of the remaining eight names have traded higher this year. In fact, XLK is not even the best U.S. technology sector ETF issued by State Street Global Advisors. That honor goes to the SPDR Morgan Stanley Technology ETF (NYSE: <a class="ticker" href="/stock/mtk#NYSE">MTK</a>), which has returned 15.3 percent this year with some help from Facebook (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>) and Priceline.com (NASDAQ: <a class="ticker" href="/stock/pcln#NASDAQ">PCLN</a>).

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3749849/the-race-to-1-000-etf-youve-never-heard-of">The Race To $1,000 ETF You've Never Heard Of</a>.

	Still, it is possible to find market-beating U.S.-focused tech ETFs. Even when excluding the PowerShares S&amp;P SmallCap Information Technology Portfolio (NASDAQ: <a class="ticker" href="/stock/psct#NASDAQ">PSCT</a>), has been <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/08/3855714/small-cap-tech-etf-merits-consideration">a stellar performer in its own right</a>, investors could have done this year with tech ETFs this year.

	The right tech ETFs that is. Some of this year's top tech ETFs share an important trait in common. These funds offer investors exposure to the increasingly prominent theme of <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3587943/two-top-ideas-among-fundamentally-weighted-etfs">fundamental weighting methodologies</a>.

	Take the PowerShares Dynamic Technology Sector Portfolio (NYSE: <a class="ticker" href="/stock/ptf#NYSE">PTF</a>) as one example. PTF is weighted by factors including rice momentum, earnings momentum, quality, management action, and value. None of the ETF's 61 holdings account for more than 2.82 percent of the fund's weight. Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) is not a member of PTF's lineup, which is a good thing given that the stock has traded lower this year.

	However, PTF has gained 14.4 percent this year while also excluding Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) and Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>), just to name a pair of large-cap tech stocks that have performed well in 2013.

	Speaking of Apple, well-documented has been the stock's impact on various ETFs and how funds with excessive to the stock are vulnerable when Apple falls. Equal-weight ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2473809/blasphemy-equal-weight-apple-aapl-qqqe-ryt">avoid that conundrum</a>.

	The First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ: <a class="ticker" href="/stock/qtec#NASDAQ">QTEC</a>) and the Guggenheim S&amp;P 500 Equal Weight Technology ETF (NYSE: <a class="ticker" href="/stock/ryt#NYSE">RYT</a>) are up an average of 20.5 percent this year. Both funds feature scant allocations to Apple, but the same goes for their exposure to Google. RYT actually has a slightly larger weight to Yahoo (NASDAQ: <a class="ticker" href="/stock/yhoo#NASDAQ">YHOO</a>) than it does Google. RYT is up 21.6 this year, meaning it has topped Google by 260 basis points.

	The First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3284663/under-the-hood-a-better-way-to-tech">also eschews cap-weighting</a> in favor of a mix of growth and value factors, including price appreciation, sales to price and one year sales growth, book value to price, cash flow to price and return on assets.

	Apple happens to be FXL's largest holding at 2.3 percent of the fund's weight. The 1.35 percent allocation to Google is well below the weights given to 3D Systems (NYSE: <a class="ticker" href="/stock/ddd#NYSE">DDD</a>), Groupon (NASDAQ: <a class="ticker" href="/stock/grpn#NASDAQ">GRPN</a>) and Yahoo, just to name a few. The result is an ETF up 19.6 this year.

	Another thing these ETFs share in common is not none are particularly large, though three have over $100 million in assets under management. Combined, PTF, QTEC, RYT and FXL have about $707 million in AUM compared to $11.3 billion for XLK.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

	Disclosure: Author does not own any of the securities mentioned here.

Intraday Update

GOOG

GRPN

MSFT

PCLN

PSCT

Powershares Dynamic Technology Securitytor Portfolio

Rydex ETF Trust Rydex S&P Equal Weight Technology ETF

YHOO

An Interesting Year For Tech ETFs

Here is the ETF Professor's ETF Watch List for Wednesday, June 5, 2013.

The iShares Nasdaq Biotechnology Index Fund (NASDAQ: <a class="ticker" href="/stock/ibb#NASDAQ">IBB</a>) will be in play.

Give the First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) a look.

The Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>) continues to tease traders.

The Market Vectors Semiconductor ETF (NYSE: <a class="ticker" href="/stock/smh#NYSE">SMH</a>) continues to impress.

Emerging markets plays of the day: Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>), WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and the Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>).

Forex play of the day: CurrencyShares Canadian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxc#NYSE">FXC</a>).

Bond play of the day: Vanguard Total Bond Market ETF (NYSE: <a class="ticker" href="/stock/bnd#NYSE">BND</a>).

ETFs to Watch June 5, 2013 (BND, GDXJ, SMH)

Last week, Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) reminded investors that although it is the largest technology company, it is far from being the perfect stock in that sector. Apple's recent woes have also reminded investors that it is possible to <a href="http://www.benzinga.com/news/earnings/13/01/3271962/no-apple-and-thats-good-for-this-tech-etf">profit with select tech ETFs that skimp on Apple</a>.

The First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) proves that notion. FXL, like many of the <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2971334/alphadex-etfs-do-things-differently-with-stellar-results">AlphaDEX ETFs</a> uses a screening process that often leads to superior returns compared ETFs using the usual market capitalization weighting methodology.

FXL is comprised of members of the Russell 1000 Index that are ranked on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and value factors such as book value and return on assets. In the case of FXL, the result is a 90-stock ETF that is not dominated by the largest tech titans.

Actually, no single stock dominates FXL as the ETF's largest holding is Marvell Technology (NASDAQ: <a class="ticker" href="/stock/mrvl#NASDAQ">MRVL</a>) with a weight of just under 2.4 percent. Only four other stocks receive weights of two percent or more in the fund. Semiconductor names account for over 21 percent of the fund's weight. Instruments and components makers chime in at 18.5 percent while software makers receive an allocation of 17.9 percent.

The median market cap within FXL is $6.35 billion, but the fund does include plenty of the most familiar technology names such as Intel (NASDAQ: <a class="ticker" href="/stock/intc#NASDAQ">INTC</a>), Cisco (NASDAQ: <a class="ticker" href="/stock/csco#NASDAQ">CSCO</a>), Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) and yes, Apple. Still, FXL's methodology has set the fund apart relative to other tech ETFs in 2013. 

Following Monday's close, FXL sported a year-to-date gain of almost seven percent, which is better than twice the returns offered this year by the PowerShares QQQ (NASDAQ: <a class="ticker" href="/stock/qqq#NASDAQ">QQQ</a>). To be precise, FXL was up 6.9 percent year-to-date after Monday's session. That means the ETF outperformed the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) and the iShares Dow Jones US Technology Index Fund (NYSE: <a class="ticker" href="/stock/iyw#NYSE">IYW</a>) by 500 basis points.

Noteworthy is the fact that FXL's relative outperformance of its peer group has not come with excessive volatility. The ETF is only <a href="http://www.etfreplay.com/charts.aspx">slightly more volatile than QQQ and noticeably less volatile than IYW and QQQ</a>.

There is no such thing as a free lunch, however, and that pertains to FXL that means the ETF will outpace its rivals in some market environments, though not all. For example, a major Apple rebound would not mean much to FXL because the stock is the ETF's smallest holding with a weight of just 0.3 percent. Over the past two years when that stock soared, FXL still move higher, but it lagged the aforementioned competing funds.

Still, there are aspects of FXL investors should consider. While the ETF is far smaller than QQQ or XLK, $192.3 million in assets under management is by no means tiny. Average daily volume of less than 161,000 shares pales in comparison to XLK, but the fund is sufficiently liquid. In the fourth quarter of 2012, there were just 10 days during which FXL closed at a premium of up to 49 basis points to the midpoint of its bid/ask spread, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXL">according to First Trust data</a>. 

Valuation will like the fact that while the tech sector looks inexpensive, FXL is as well. XLK has a P/E ratio of 13.1 and a price-to-book ratio of 3.06. FXL's P/E ratio of almost 14.7 is obviously higher, but the fund's price-to-book of 1.99 and a price-to-sales ratio of 0.81 might be saying FXL is offering some value even after rising 13.2 percent in the past 90 days.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

CSCO

INTC

MRVL

Under The Hood: A Better Way to Tech 

First Trust, the Illinois-based ETF sponsor, is a major issuer of sector funds. As most investors know, there is no shortage of sector ETFs on the market today and this territory long dominated by the biggest fund sponsors, namely State Street's (NYSE: <a class="ticker" href="/stock/stt#NYSE">STT</a>) select sector SPDRs along with sector funds issued by iShares and Vanguard.

That is tough territory to encroach upon, but First Trust has done just that with its AlphaDEX funds that eschew the usual cap-weighting methodology in favor of using other valuation metrics to construct ETF indexes. 

The strategy has proven efficacious. Not only have an array of First AlphaDEX ETF proven proficient in terms of gaining assets under management, some have outperformed iShares, SPDR and Vanguard rivals over time.

"We're more selective in our approach," said First Trust ETF Strategist and Senior Vice President Ryan Issakainen in an interview with Benzinga from the Morningstar ETF Conference in Chicago. "We're overweighting in terms of investment merit. Over time, these attributes predict relative outperformance. We consider momentum and valuation factors that have been vetted and passed through some rigor."

The AlphaDEX methodology includes ranking members of various Russell 1000 sectors on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets, <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FXN">as First Trust notes on the AlphaDEX funds' web sites</a>.

AlphaDEX has worked for some First Trust sector funds. For example, the First Trust Materials AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxz#NYSE">FXZ</a>) has outpaced the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2930670/etf-showdown-materials-melee">over the past year</a>, quarter and year-to-date.

Still, the AlphaDEX funds are not as large as their counterparts and in most cases are not as voluminous. The First Trust AlphaDEX Energy Fund (NYSE: <a class="ticker" href="/stock/fxn#NYSE">FXN</a>) has $134.5 million in AUM compared to $7.2 billion for the Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>). The First Trust AlphaDEX Health Care Fund (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>) has average daily volume of 138,000 shares while Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>) has average turnover of almost 4.8 million shares.

Issakainen notes that the AlphaDEX ETFs have been well received by investors.

"The ETFs are penetrating registered investment advisors and asset management firms," he said. "They're using AlphaDEX funds more now. The AlphaDEX sector funds have been out for more than five years and we now how they perform in different environments."

The statistics support Issakainen's view that investors are warming to the AlphaDEX methodology. FXH has $642.5 million in AUM. The First Trust Consumer Staples AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxg#NYSE">FXG</a>) has $360.9 million in assets. The First Trust Financials AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxo#NYSE">FXO</a>) has nearly $187 million in assets. Those are all numbers that imply the AlphaDEX sector funds are not only surviving, but thriving as well.

Due to AlphaDEX sector funds avoiding excessive weights to just one or two stocks, there are times when the funds can lag traditionally weighted ETFs. The technology sector provides a good example.

Year-to-date,the First Trust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) is up 8.3 percent. FXL currently has a weight of just 1.9 percent to Apple. On the other hand, the iShares Dow Jones U.S. Technology Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyw#NYSE">IYW</a>) is up nearly 19 percent this year. That fund features the largest allocation of any ETF to Apple with a current weight of 24.2 percent.

"There will be times when AlphaDEX funds trail, particularly during risk averse environments," said Issakainen. "If we're underweight big, safe stocks, we can underperform, but that is not the case the majority of the time."

He is right about that. Over the past five years, a brutal time for bank stocks, FXO is off 16.3 percent compared to a 53 percent plunge for the Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>). Since May 2007, the debut month of FXH, that ETF has surged over 70 percent, but XLV is up just 14 percent. In the past year, FXN has delivered almost 400 basis points in additional alpha compared to XLE and has topped the Vanguard Energy ETF (NYSE: <a class="ticker" href="/stock/vde#NYSE">VDE</a>) by more than 500 basis points.

For more on AlphaDEX ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2930670/etf-showdown-materials-melee">here</a>.

Global

AlphaDEX ETFs Do Things Differently With Stellar Results

Jabil Circuit (NYSE: <a class="ticker" href="/stock/jbl#NYSE">JBL</a>) is scheduled to report second-quarter fiscal 2012 results tomorrow, March 20, after the closing bell.

The tech company has reported increasing earnings for three straight quarters and its stock is more than 36% higher than at the beginning of the year. Being an Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) iPad supplier to has helped that momentum. Investors will be looking for those trends to continue in and following this earnings report.

Expectations

Analysts predict that Jabil Circuit will report that per-share earnings came to $0.58 for the quarter and that revenue totaled $4.1 billion. In the same quarter of last year, the electronic products maker posted $0.54 per share and $3.9 billion in sales. That EPS estimate is a penny more than it was 60 days ago. Note that Jabil Circuit's EPS were in line with consensus estimates in the previous quarter, ending a streak of earnings beats that went back more than ten quarters.

In the first-quarter report, the company said both EPS and revenues rose year-over year. EPS came to $0.65 a share and sales totaled $4.4 billion. That revenue result missed analysts' expectations, though. Jabil Circuit attributed the growth to strength in its Diversified Manufacturing Services and High Velocity segments. It said an emphasis on operational efficiency and business diversity helped it overcome economic uncertainty.

See also: <a href="http://www.benzinga.com/news/earnings/11/12/2220371/jabil-circuit-falls-on-mixed-earnings-and-guidance">Jabil Circuit Falls on Mixed Earnings and Guidance</a>

Looking ahead to the current quarter, so far analysts expect to see sequential and year-over-year growth of both per-share earnings and revenues. That EPS estimate also has inched up a penny in the past 60 days.

The Company

St. Petersburg, Fla.-based Jabil Circuit provides electronic manufacturing services and solutions worldwide. Customers include companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, solar, storage and telecommunications industries. The company was founded in 1966 and it is now an S&amp;P 500 component with a market cap of $5.6 billion.

Competitors include Flextronics International (NASDAQ: <a class="ticker" href="/stock/flex#NASDAQ">FLEX</a>), Sanmina-SCI (NASDAQ: <a class="ticker" href="/stock/sanm#NASDAQ">SANM</a>) and Benchmark Electronics (NYSE: <a class="ticker" href="/stock/bhe#NYSE">BHE</a>). Flextronics missed EPS estimates in the most recent quarter but topped sales expectations. Sanmina-SCI fell short on both the top and bottom lines, while Benchmark offered positive surprises for the most recent quarter.

See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/01/2276697/collins-stewart-reiterates-buy-9-target-on-flextronics">Collins Stewart Reiterates Buy, $9 Target on Flextronics</a>

During the three months that ended in February, Jabil Circuit held its annual shareholder meeting and the board declared a quarterly dividend. The company also acquired Telmar Network Technology, and it boosted its chief executive's compensation package by 5% to reflect the company's financial performance during fiscal 2011. 

Performance

Jabil Circuit has a long-term earnings per share growth forecast of 12.5% and a return on equity of 21.6%. Sales increased 10.0% over the past five years. The P/E and PEG ratios are in line with the industry averages, and the operating margin is a little higher than the industry average. Short interest is 4.2% of the float. Analysts on average recommend buying the stock. Their mean price target on the shares currently is about 5% higher than the current share price.

Shares are trading almost 37% higher than at the beginning of the year and are near the 52-week high. The price has been above the 50-day and 200-day moving averages since the beginning of the year. Over the past six months, the stock has outperformed the competitors mentioned above, as well as the broader markets.

See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2387655/garmin-jabil-circuit-and-other-top-tech-stocks-in-february">Garmin, Jabil Circuit and Other Top Tech Stocks in February</a>

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in Jabil Circuit might want to consider the following trades:

<ul><li>First Trust Technology AlphaDEX (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) is more than 17% higher year to date.</li>
<li>Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is more than 17% higher year to date.</li>
<li>PowerShares Dynamic Technology (NYSE: <a class="ticker" href="/stock/ptf#NYSE">PTF</a>) is more than 17% higher year to date.</li>
<li>Rydex S&amp;P Equal Weight Technology (NYSE: <a class="ticker" href="/stock/ryt#NYSE">RYT</a>) is about 17% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Celestica (NYSE: <a class="ticker" href="/stock/cls#NYSE">CLS</a>) is up more than 36% year to date.</li>
<li>Plexus (NASDAQ: <a class="ticker" href="/stock/plxs#NASDAQ">PLXS</a>) is up about 32% year to date.</li>
<li>Flextronics International (NASDAQ: <a class="ticker" href="/stock/flex#NASDAQ">FLEX</a>) is up more than 30% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Earnings

Previews

FLEX

PLXS

SANM

Jabil Circuit Earnings Preview: Higher Q2 EPS and Sales Expected

VeriFone Systems (NYSE: <a class="ticker" href="/stock/pay#NYSE">PAY</a>) is scheduled to report fiscal first-quarter 2012 results Monday, March 5, after the markets close. Shares surged recently on Mastercard's (NYSE: <a class="ticker" href="/stock/ma#NYSE">MA</a>) announcement that it would be moving toward a new payment standard. VeriFone has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters and its net income rise has increased in each of the past three quarters. Investors will be hoping for the trend to continue, as well as watching for the impact of recent acquisitions. 

See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/01/2303536/jp-morgan-comments-on-mastercards-emv-announcement">JP Morgan Comments on MasterCard's EMV Announcement</a>

Analysts are looking for VeriFone to report that its per-share earnings came to $0.52 for the quarter and that revenue totaled $417.5 million. In the same quarter of last year, the company posted $0.43 per share and $283.9 million in sales. Note that the EPS estimate is unchanged over the past 60 days. And analysts have underestimated VeriFone's per-share earnings in the past ten quarters.

Looking back to the previous quarter, the electric payments company said it earned $198.8 million, with adjusted EPS of $0.53. Revenue rose 48.8% to $410.7 million. Both EPS and revenue results topped analysts' expectations. The company benefited from a huge tax gain in the quarter. And CEO Douglas Bergeron said: “We finished 2011 with another year of record revenues and record profit, and are now midway through our multi-year transformation to the world's leading services-driven payment technology provider.”

Looking ahead, analysts so far expect to see sequential and year-over-year growth of both EPS and revenues in the current quarter. In fact, the consensus forecast has sales up 60.0% in the second quarter, which ends in April.

The Company

San Jose, Calif.-based VeriFone Systems designs, markets and services electronic payment solutions, including countertop electronic payment systems, secure PIN pads and wireless system solutions. The company serves financial institutions, payment processors, petroleum companies, large retailers, taxi fleets, government organizations, health care companies, independent sales organizations and advertisers. VeriFone now has a market cap of $5.0 billion.

Competitors include NCR (NYSE: <a class="ticker" href="/stock/ncr#NYSE">NCR</a>), ACI Worldwide (NASDAQ: <a class="ticker" href="/stock/aciw#NASDAQ">ACIW</a>) and JDA Software (NASDAQ: <a class="ticker" href="/stock/jdas#NASDAQ">JDAS</a>). All three of these rivals beat fourth-quarter EPS and revenue estimates, though the SEC is investigating JDA's accounting and its stock may be dropped from the Nasdaq.

See also: <a href="http://www.benzinga.com/news/12/02/2385777/jda-software-files-form-12b-25-with-sec-to-file-10-k-late">JDA Software Files Form 12b-25 with SEC</a>

During the three months that ended in January, VeriFone completed the acquisition of Point, one of the largest providers of payment and gateway services and solutions for retailers in Northern Europe. Also, VeriFone saw its one millionth payment acceptance system installed in Russia.

See also: <a href="http://www.benzinga.com/news/11/11/2083471/verifone-acquires-global-bay-to-expand-retail-mobility-strategy">Verifone Acquires Global Bay to Expand Retail Mobility Strategy</a> and <a href="http://www.benzinga.com/news/11/12/2215337/verifone-enters-long-term-strategic-partnership-with-nbc-owned-stations">Verifone Enters Long-Term Strategic Partnership with NBC-Owned Stations</a>

Performance

Verifone's P/E and PEG ratios are less than the industry average. The company has a long-term earnings per share growth forecast of 23.5%. Its operating margin is better than the industry average, and the return on equity is 40.3%. Though short interest is 6.0% of the float, eight of the 12 analysts surveyed who follow the stock rate it a Buy or Strong Buy. None recommend selling shares. But their mean price target on the shares is only 3.2% higher than the share price at Friday's close.

Shares are trading 34.3% higher than at the beginning of the year, but still down 1.8% from a year ago, as well as 18.9% below the 52-week high of $58.88. The share price is well above the 50-day and 200-day moving averages. Over the past six months, the stock has narrowly outperformed competitors NCR and ACI Worldwide but more comfortably outpaced the broader markets.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds invested in VeriFone might want to consider the following trades:

<ul><li>First Trust Technology AlphaDEX (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) is more than 14% higher year to date.</li>
<li>Vanguard Mid-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/vot#NYSE">VOT</a>) is more than 14% higher year to date.</li>
<li>iShares Morningstar Mid Growth Index (NYSE: <a class="ticker" href="/stock/jkh#NYSE">JKH</a>) is more than 13% higher year to date.</li>
<li>iShares S&amp;P MidCap 400 Growth Index (NYSE: <a class="ticker" href="/stock/ijk#NYSE">IJK</a>) is more than 12% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in the same industry:

<ul><li>Virco Manufacturing (NASDAQ: <a class="ticker" href="/stock/virc#NASDAQ">VIRC</a>) is up more than 32% year to date.</li>
<li>Diebold (NYSE: <a class="ticker" href="/stock/dbd#NYSE">DBD</a>) is up more than 29% year to date.</li>
<li>Steelcase (NASDAQ: <a class="ticker" href="/stock/scs#NASDAQ">SCS</a>) is up more than 13% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

ACIW

JDAS

iShares Morningstar Mid Growth Index Fund

VIRC

VeriFone Earnings Preview: Double-Digit EPS, Sales Growth Expected

Here's a quick look at some of the top performing tech stocks in February. These stocks all have a market cap of more than $500 million, and they all pay a dividend too.

Advantest (NYSE: <a class="ticker" href="/stock/ate#NYSE">ATE</a>) rose more than 33% in the past month but is still down almost 31% from a year ago. This Tokyo-based maker of semiconductor testing systems announced in January the launch of a diesel emissions analysis service. The company was founded in 1954 and now has a market cap of $2.5 billion. Its dividend yield is 0.8%. And the stock has outperformed Massachusetts-based competitor Teradyne (NYSE: <a class="ticker" href="/stock/ter#NYSE">TER</a>), as well as the broader markets, over the past six months.

See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2337261/seven-japanese-stocks-up-more-than-10-year-to-date">Seven Japanese Stocks Up More Than 10% Year to Date</a>

Computer Sciences (NYSE: <a class="ticker" href="/stock/csc#NYSE">CSC</a>) is up about 34% year to date, including a more than 22% rise in the past month. CSC recently named a new CEO, and the CFO is leaving the company in May. Also, the company is rumored to be a takeover target. CSC is an S&amp;P 500 component that has a market cap of $5.0 billion. And it has a dividend yield of 2.5%. The stock has outperformed competitors such as Accenture (NYSE: <a class="ticker" href="/stock/acn#NYSE">ACN</a>), as well as the S&amp;P 500 average, since the beginning of the year.

ESCO Technologies (NYSE: <a class="ticker" href="/stock/ese#NYSE">ESE</a>) is up about 20% in the past month but pulled back a bit in the past week. The company blamed disappointing Q1 results on late payments from large customers. Based in St. Louis, this maker of engineered products and systems has a market cap of $954.9 million, a dividend yield of 0.9%, a long-term EPS growth forecast of 17.5%. Over the past six months, the stock has outperformed competitors Itron (NASDAQ: <a class="ticker" href="/stock/itri#NASDAQ">ITRI</a>) and Oracle (NASDAQ: <a class="ticker" href="/stock/orcl#NASDAQ">ORCL</a>).

Jabil Circuit (NYSE: <a class="ticker" href="/stock/jbl#NYSE">JBL</a>) is almost 32% higher year to date, and up more than 57% in the past six months. The St. Petersburg, Fla.-based electronic components maker said fiscal first-quarter EPS and sales rose, and it offered strong guidance for the current quarter. The $5.4 billion market cap company is an S&amp;P 500 component. Its return on equity is 21.6%. The stock has outperformed competitors such as Flextronic International (NASDAQ: <a class="ticker" href="/stock/flex#NASDAQ">FLEX</a>) over the past six months.

Garmin (NASDAQ: <a class="ticker" href="/stock/grmn#NASDAQ">GRMN</a>) is more than 18% higher year to date, including more than 15% in the past month. The company reported better-than-expected fourth-quarter results on strength in Europe and in the company's Fitness segment. This Swiss navigation, communication and information products maker has a market cap of $9.2 billion. Its dividend yield is 3.4%. Over the past six months, the stock has outperformed Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Motorola Mobility (NYSE: <a class="ticker" href="/stock/mmi#NYSE">MMI</a>) and Sony (NYSE: <a class="ticker" href="/stock/sne#NYSE">SNE</a>).

Seagate Technology (NASDAQ: <a class="ticker" href="/stock/stx#NASDAQ">STX</a>) is trading almost 62% higher than at the beginning of the year. Shares surged at the end of January when the hard drive maker said that its fiscal second-quarter net income more than tripled from a year earlier. The $11.8 billion market cap Irish company has a dividend yield of 3.8% and its return on equity is 29.3%. The stock has outperformed peers NetApp (NASDAQ: <a class="ticker" href="/stock/ntap#NASDAQ">NTAP</a>) and Western Digital (NYSE: <a class="ticker" href="/stock/wdc#NYSE">WDC</a>) over the past six months.

See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2378169/seven-hot-european-stocks">Seven Hot European Stocks</a>

VimpelCom's (NYSE: <a class="ticker" href="/stock/vip#NYSE">VIP</a>) share price is up more than 28% year to date but still down more than 13% from the 52-week high. The Dutch telecom is expected to say in its March 13 quarterly report that revenues more than doubled year over year. It has a dividend yield of 6.5% and an operating margin higher than the industry average. Short interest is 0.4% of the float. The stock has outperformed the likes of Mobile Telesystems OJSC (NYSE: <a class="ticker" href="/stock/mbt#NYSE">MBT</a>) since the beginning of the year.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds focused on the tech sector might want to consider the following trades:

<ul><li>Direxion Daily Technology Bull 3X Shares (NYSE: <a class="ticker" href="/stock/tyh#NYSE">TYH</a>) is up more than 55% year to date.</li>
<li>ProShares Ultra Technology (NYSE: <a class="ticker" href="/stock/rom#NYSE">ROM</a>) is up more than 34% year to date.</li>
<li>SPDR Morgan Stanley Technology (NYSE: <a class="ticker" href="/stock/mtk#NYSE">MTK</a>) is up more than 16% year to date.</li>
<li>First Trust Technology AlphaDEX (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) is up almost 15% year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions:

<ul><li>Direxion Daily Technology Bear 3X Shares (NYSE: <a class="ticker" href="/stock/typ#NYSE">TYP</a>) is trading near a 52-week low.</li>
<li>ProShares UltraShort Technology (NYSE: <a class="ticker" href="/stock/rew#NYSE">REW</a>) is trading near a 52-week low.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Dividends

GRMN

ITRI

NTAP

ORCL

Open Joint Stock Company Vimpel-Communications

Garmin, Jabil Circuit and Other Top Tech Stocks in February

EchoStar (NYSE: <a class="ticker" href="/stock/sats#NYSE">SATS</a>) is scheduled to report third-quarter 2011 results Monday, November 7. EchoStar, which was spun off from Dish Network (NASDAQ: <a class="ticker" href="/stock/dish#NASDAQ">DISH</a>) in January of 2008, reported a profitable second quarter, its fourth in a row. The question is whether the company can reverse that quarter's decline in revenues.

The consensus third-quarter forecast calls for EchoStar to report earnings of $0.38 per share, which would be a nice increase from $0.06 in the same quarter of last year. That EPS estimate is unchanged from 60 days ago. Note though that the company fell short of consensus EPS estimates in two of the past six quarters.

Analysts also expect the company to post revenues of $754.9 million, or a 24.4% increase from a year ago. Looking ahead to the current quarter, revenues are anticipated to jump more than 40% year over year. And for the full year, the forecast so far calls for revenues to be 8.0% higher, with per-share earnings up 6.0% from a year ago.

The Company

EchoStar produces and markets digital set-top boxes and related products for direct-to-home satellite and cable providers. The Englewood, Colo.-based company also provides digital broadcast operations and other services primarily to DISH Network, but also to the U.S. government service providers, state agencies, Internet service providers, and broadcast news organizations. EchoStar owns or leases 10 in-orbit satellites and related FCC licenses. The company currently has a market cap of $2.3 billion.

During the three months that ended in September, the company agreed to be a lender to bankrupt mobile satellite network operator TerreStar Networks, and EchoStar Europe launched a set-top box that supports the Android OS. More recently, EchoStar announced that its chief financial officer would be stepping down.

Performance

The company has a P/E ratio of 10.9, which is less than the industry average. The operating margin of 5.8% is higher than the industry average. And the company's cash on hand more than doubled in the most recently reported quarter. Short interest is less than 1% of the float. Two of two analysts surveyed recommend buying shares, and they have a mean price target on the stock of $41 per share. That gives the stock plenty of room to run from the current price of $26.44.

The share price suffered a steep decline in July and August, but the stock is up almost 34% from a recent 52-week low. Shares are trading now about 6% higher than at the beginning of the year. The share price is above the 50-day moving average. But over the past six months, the stock has underperformed larger competitors Cisco Systems (NASDAQ: CSCA) and Motorola Solutions (NYSE: <a class="ticker" href="/stock/msi#NYSE">MSI</a>), as well as the broader markets.

Action Items:

Bullish: Investors interested in exchange traded funds invested in EchoStar might want to consider the following trades:

<ul><li>SPDR S&amp;P Telecom (NYSE: <a class="ticker" href="/stock/xtl#NYSE">XTL</a>) is almost 18% higher than a month ago.</li>
<li>First Trust Technology AlphaDEX (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>) is more than 10% higher than a month ago.</li>
<li>Guggenheim Spin-Off (NYSE: <a class="ticker" href="/stock/csd#NYSE">CSD</a>) is more than 8% higher than a month ago.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>Cisco Systems (NASDAQ: <a class="ticker" href="/stock/csco#NASDAQ">CSCO</a>) is almost 30% higher than three months ago.</li>
<li>Motorola Solutions (NYSE: <a class="ticker" href="/stock/msi#NYSE">MSI</a>) is more than 17% higher than three months ago.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

DISH

SATS

EchoStar Earnings Preview: Strong EPS and Sales Results Expected

While this isn't an outright bullish call on the sector at large, the fact is technology issues and the Nasdaq have held up well lately. In the past three months, the PowerShares QQQ (Nasdaq: <a class="ticker" href="/stock/qqq#Nasdaq">QQQ</a>) is fractionally higher and the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is off about 3.5%. 

Those numbers compare to a loss of nearly 8% of the S&amp;P 500 over the same time. Tech's ability to stand tall lately could be good news for the broader market as the group accounts for about 19% of the S&amp;P 500's sector weight.

So maybe tech is finally starting to awaken from its slumber. If that's the case, here are five somewhat obscure tech ETFs your broker probably forgot to tell you about. Remember, it's not always all about QQQ and XLK. 

FirstTrust Technology AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxl#NYSE">FXL</a>):
Home to nearly 90 stocks, the FirstTrust Technology AlphaDEX Fund is equal dollar-weighted and not heavy on well-known large-cap tech names. That said, you will find some big-name tech issues here and be advised that FXL devotes more than a third of its weight to semiconductor makers. The expense ratio of 0.71% is high compared to the average for tech ETFs, but someone likes this ETF as it has over $136 million in assets under management.

PowerShares Dynamic Networking Portfolio (NYSE: <a class="ticker" href="/stock/pxq#NYSE">PXQ</a>):
One look at the name of this ETF and it might have you thinking it's heavy on Cisco (Nasdq: CSCO). Fortunately, Cisco doesn't even appear in this ETF. Thirty stocks, an expense ratio of 0.63% and a cheaper way of getting your hands on VMWare (NYSE: <a class="ticker" href="/stock/vmw#NYSE">VMW</a>) and Qualcomm (Nasdaq: <a class="ticker" href="/stock/qcom#Nasdaq">QCOM</a>). Support looks firm at $22 and that could mean a rally back to $28-$29 is in the cards over the next several months.

SPDR S&amp;P International Technology Sector ETF (NYSE: <a class="ticker" href="/stock/ipk#NYSE">IPK</a>):
For those looking to play a rebound in Japanese and South Korean equities without owning a country-specific ETF, the SPDR S&amp;P International Technology Sector ETF might just be the way to do that. Those two countries are tech kingpins and they account for over 58% of IPK's weight. That also explains why IPK is down about 17% in the past three months. Watch to see how firm support is at $21 before getting involved.

First Trust ISE Cloud Computing Index Fund (Nasdaq: <a class="ticker" href="/stock/skyy#Nasdaq">SKYY</a>):
SKYY made its debut in July to plenty of fanfare as the first ETF devoted exclusively to the booming cloud computing theme. That fanfare has subsided, but SKYY has still accumulated almost $52.5 million in AUM and that's a fine haul in just three months. We like the Amazon (Nasdaq: <a class="ticker" href="/stock/amzn#Nasdaq">AMZN</a>) exposure. We even like the Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>) exposure, but be aware that Cisco is also a top-10 SKYY holding.

iShares S&amp;P North American Technology Software Index Fund (NYSE: <a class="ticker" href="/stock/igv#NYSE">IGV</a>):
It's probably safer to be bullish on tech names and ETFs that have some kind of mobile exposure right now, but for those looking to play a bounce in software, the iShares S&amp;P North American Technology Software Index Fund works. In fact, the ETF's chart is pretty attractive here. Continued closes in the $53-$54 area could mean IGV is setting up to tack on another 10%. Microsoft (Nasdq: MSFT) and Oracle (Nasdaq: <a class="ticker" href="/stock/orcl#Nasdaq">ORCL</a>) represent over 19% of IGV's weight.

Technicals

Movers

SPDR S&P International Technology Sector ETF

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First Trust Technology AlphaDEX

Overview

First Trust Technology AlphaDEX (ARCA:FXL), Quote.Headers.trade-ideas