Hot Stocks Apple, Microsoft, Nvidia Lead Lower-Risk Tech Play Near Buy Point

2 months ago 17

Investors seeking entree to blistery stocks successful tech, artificial quality and self-driving cars but are acrophobic of a precocious level of hazard person respective options.

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One of them is Global X Autonomous & Electric Vehicles ETF (DRIV), which marked its 3rd day successful April. The $957.7 cardinal money tracks the Solactive Autonomous & Electric Vehicles Index. It provides entree not conscionable to EV makers, but besides those progressive successful self-driving software, lithium batteries, and materials specified arsenic lithium and cobalt.

Consumer discretionary and accusation technology, conscionable implicit 33% each, were the 2 biggest assemblage weights arsenic of June 30. Materials accounted for 15%, industrials 12% and connection services 6%.

In presumption of countries, the U.S. represented astir 63%, Japan 8%, China 5% and Germany 4%. The Netherlands and Ireland were astir 3% each, followed by smaller positions successful Canada, South Korea, Britain, Australia and Belgium. Other countries and the currency constituent made up 3.5%.

Aside from Japan's Toyota Motor (TM), General Electric (GE) and Tesla (TSLA), the apical 10 holdings are each U.S. tech stocks. Together, they relationship for conscionable northbound of 30% of the fund's 76 holdings, and are lone partially successful the EV business.

Nasdaq 100 Hot Stocks Lead DRIV

The apical 10 see Nasdaq 100 heavyweights Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA) and Alphabet (GOOGL), arsenic good arsenic Intel (INTC), Cisco (CSCO) and Qualcomm (QCOM).

Apple, up 8% this year, slipped backmost into bargain scope Thursday from a 137.17 introduction of a cupful base. The bargain scope goes up to 144.03. Apple hasn't been a large gainer this year. But investors person precocious been driving the banal up up of the company's July 27 net report. There's besides rising anticipation for Apple's next-generation iPhone 13 series, owed successful September.

Microsoft stock remains somewhat extended from a 263.29 bargain constituent of a cupful base. The bargain scope goes up to 276.45. Volume has been connected the airy broadside since the June 22 breakout. The bundle giant, up 25% this year, is an IBD Leaderboard and IBD Long-Term Leader stock.

Google genitor Alphabet is successful bargain scope from a 2,431.48 introduction of a level base. Shares person rallied much than 40% this year. The basal is 2nd stage, which means Google could inactive person country to run. Stocks often marque their biggest advances retired of specified early-stage bases.

Nvidia stock, up implicit 50% this year, is well-extended from a 648.67 buy point of a cupful basal cleared successful precocious May. It's rallied much than 20% from the entry, which triggers the 20%-25% profit-taking merchantability rule.

Hot Stocks, Lower Risk

The Global X ETF gives investors a accidental to ain blistery stocks similar Nvidia and Microsoft without worrying if they're retired of bargain range. It besides offers entree to scores of different apical tech and car plays.

Because the money holds a handbasket of stocks, investors are exposed to overmuch little hazard adjacent if one, 2 oregon respective holdings person a atrocious day.

DRIV has been gathering a level basal since mid-February, according to IBD MarketSmith illustration analysis. It's astir 5% distant from a 29.01 buy point. The ETF rallied 62% past twelvemonth and was up 15% this twelvemonth going into Friday. It charges a 0.68% disbursal ratio.

Follow Nancy Gondo connected Twitter at @IBD_NGondo

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