Morningstar Prefers XLK Among Tech ETFs

With so many ETFs out there tracking the tech sector, picking just one can be a daunting task, but Morningstar analyst Robert Goldsborough seems to like the Technology Select Sector SPDR XLK, which he says is trading at a P/E of 15.1. Goldsborough prefers XLK over the PowerShares QQQ QQQQ and the Vanguard Information Technology ETF VGT. What about XLK as a play on Apple AAPL, the ETF's top holding? "Most Wall Street analysts continue to feel good about Apple's product pipeline and even about its management bench, however, and if anything, the pullback in Apple's shares immediately following the firm's announcement may represent a buying opportunity for ETF investors," the analyst said, according to Barron's. Other top XLK holdings include IBM IBM, Google GOOG and Microsoft MSFT. And yes, the ETF Professor recommended XLK as an Apple play earlier this week.