ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. DTEC Rallies as Big Tech Tumbles
ETF Building Blocks Channel
Share

DTEC Rallies as Big Tech Tumbles

Elle CarusoOct 26, 2022
2022-10-26

The ALPS Disruptive Technologies ETF (DTEC A-) is rallying while Big Tech falls on disappointing earnings results from Alphabet (GOOGL) and Microsoft (MSFT).

DTEC is up over 2% mid-day Wednesday and has increased nearly 7.5% over the past five days. Meanwhile, shares of Microsoft and Alphabet fell 8% in early trading Wednesday, bringing down other Big Tech names with them. Meta Platforms (META), which reports earnings after markets close Wednesday, was down 4%, and Amazon (AMZN) and Apple (AAPL) have declined 4% and 1%, respectively, ahead of their earnings releases on Thursday. 

During the third quarter, Microsoft’s sales rose at their slowest rate in five years, as rising energy costs and a strong dollar ate into profits. Alphabet, the parent company of Google, missed analyst expectations and said during its earnings call that growth in its core advertising business had slowed to its weakest point since 2013 (apart from a short period at the start of the pandemic), as companies slashed marketing budgets, The New York Times reported.

DTEC, notably, doesn’t hold any of the core Big Tech companies: Alphabet, Amazon, Apple, Microsoft, and Meta; although it does hold Tesla and Netflix – in small amounts. DTEC utilizes a unique equal weighting methodology, so Netflix is weighted at 1.36% of the portfolio, and Tesla is weighted at just 0.81%, according to ALPS.

Other holdings in DTEC include AutoStore Holdings (AUTO), HealthEquity Inc (HQY), ADT Inc (ADT), SAP SE (SAP), DexCom Inc (DXCM), Intuitive Surgical Inc (ISRG), Salesforce Inc (CRM), Snowflake Inc (SNOW), and Schneider Electric SE (SU), according to YCharts.

The fund covers ten different themes within the tech sector: healthcare innovation, the internet of things, clean energy and smart grid, cloud computing, data and analytics, fintech, robotics, and AI, cybersecurity, 3D printing, and mobile payments, all with a focus on disruptive technologies and innovation. 

DTEC selects ten companies from each theme according to a proprietary model and equally weights each security, effectively giving each theme and each company equal representation. This methodology results in much more balanced exposure to the sector, which is notorious for being highly concentrated in just a few mega-cap names.

Other funds that offer exposure to technology stocks include the ProShares S&P Technology Dividend Aristocrats ETF (TDV A), the First Trust NASDAQTechnology Dividend Index Fund (TDIV A-), and the BlueStar Israel Technology ETF (ITEQ B+).

For more news, information, and strategy, visit the ETF Building Blocks Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X