Technology stocks have held up better than average in the highly volatile equity markets of the past few weeks.

IYW

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In the three months ended October 7, the Dow Jones U.S. Technology Sector Index Fund (IYW) is down 8%.  That compares to a 14% decline for the broader market over the same time period.

One factor that explains the outperformance of the tech sector is that it is more dependent on business spending than other sectors that are more consumer oriented.  Corporations are flush with cash and continue to invest in productivity enhancing technology projects.

IYW tracks the Dow Jones U.S. Technology Index.  The exchange traded fund has 158 holdings including AppleIBMMicrosoft and Google.  The expense ratio for the $1.2 billion ETF is 0.47%.

For more ways to invest, see the complete list of sector ETFs.

– ETF MarketPro Staff
October 10, 2011