Should You Apply “Buy the Dip” Strategy in Tech ETFs?
From Nasdaq: 2025-02-07 08:00:00
- Amid market shocks targeting tech investing, investors are leveraging buying opportunities despite recent turbulence. NVIDIA saw a 17% decline, yet GraniteShares 2x Long NVDA ETF attracted $1.6 billion in inflows last week. Data shows retail traders doubling down on tech investments, signaling confidence in the sector’s long-term potential.
- The buy-the-dip strategy faces more testing ahead as market sensitivity to event risk increases. With ongoing concerns over DeepSeek and trade issues, volatility is expected. Despite risks, investor confidence in buying the dip, especially in Big Tech, remains strong. ETF investing strategies are discussed to navigate the current scenario.
- Covered call ETFs offer a strategy to earn higher income while mitigating market selloffs. Global X Nasdaq 100 Covered Call ETFs like QYLD and QYLG provide exposure to tech companies with a covered call strategy. First Trust Nasdaq BuyWrite Income ETF offers opportunities to generate income through covered call options on the Nasdaq-100 Index.
- Semiconductor ETFs like VanEck Semiconductor ETF (SMH) remain attractive as AI demand rises. Despite recent concerns, tech giants like Microsoft and Meta emphasize the importance of infrastructure investments for long-term AI dominance. Microsoft CEO Satya Nadella highlights the necessity of semiconductor investments to meet increasing AI demand, making semiconductor ETFs a good buy.
Read more at Nasdaq: Should You Apply “Buy the Dip” Strategy in Tech ETFs?