In this series, we will analyze the weekly performance of the Technology Select Sector SPDR Fund (XLK) ETF, as well as the performance of subsectors in the ETF.
Last week, XLK generated returns of 0.69% to close at $42.54 on Friday, June 19, 2015. In comparison, the PureFunds ISE Cyber Security ETF (HACK) and the PowerShares QQQ Trust ETF (QQQ) generated returns of 3.04% and 1.55%, respectively, over the last week.
In the above chart, we can see that the Technology, Hardware, and Storage subsector generated negative returns of -0.97%. Plus, the Systems Software and IT Consulting subsectors generated negative returns of -0.40% and -0.34%, respectively. These subsectors have an aggregated weight of 28.29% in XLK. Subsectors that have outperformed XLK include Semiconductors, Semiconductor Equipment, and Home Entertainment Software, with returns of 1.75%, 2.15%, and 5.10%, respectively.
Although there is only one stock within the Home Entertainment Software subgroup—EA Sports (EA)—it is really a matter of semantics, as this company can easily be grouped within the Application Software subgroup. Including EA Sports, that group has risen 16.61% year-to-date (or YTD) as of June 23, 2015, with the only falling stock being Autodesk (ADSK).
EA Sports has now risen 41.66% YTD, driven by positive feedback and company outlook on the sales of its hotly anticipated Star Wars: Battlefront multiplayer game. The company projects it will sell ~10 million copies of the game in 2016. After EA showed off its game-play footage last Monday at E3 (the Electronic Entertainment Expo), shares reacted by rising 2.1%. That trend has continued in earnest.
The next article discusses the performance of Oracle (ORCL).