The Technology sector ranks eighth in Q2 2019.

Based on an aggregation of ratings of 430 stocks in the Technology sector.

TDIV is our top-rated Technology sector ETF and TSNIX is our top-rated Technology sector mutual fund.

The Technology sector ranks eighth out of the 11 sectors as detailed in ourQ219 Sector Ratings for ETFs and Mutual st quarter, the Technology sector ranked fourth. It gets our Neutral rating, which is based on an aggregation of ratings of the 430 stocks in the Technology sector. See a recap of ourQ119 Sector Ratings here.

Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the sector. Not all Technology sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 13 to 318). This variation creates drastically different investment implications and, therefore, ratings.

Investors seeking exposure to the Technology sector should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2.

OurRobo-Analyst technology[1]empowers our uniqueETF and mutual fund rating methodology, which leverages our rigorous analysis of each funds holdings.[2]We think advisors and investors focused on prudent investment decisions should include analysis of fund holdings in their research process for ETFs and mutual funds.

Figure 1: ETFs with the Best & Worst Ratings – Top 5

* Best ETFs exclude ETFs with TNA less than $100 million for inadequate liquidity.

Sources: New Constructs, LLC and company filings

Two ETFs (DRIV, KOIN) are excluded from Figure 1 because their total net assets (TNA) are below $100 million and do not meet our liquidity minimums.

Figure 2: Mutual Funds with the Best & Worst Ratings

* Best mutual funds exclude funds with TNA less than $100 million for inadequate liquidity.

Sources: New Constructs, LLC and company filings

TDIVis the top-rated Technology ETF andTSNIXis the top-rated Technology mutual fund. TDIV earns a Very Attractive rating and TSNIX earns an Attractive rating.

IBUYis the worst rated Technology ETF andRSIFXis the worst Technology mutual fund. They both earn a Very Unattractive rating.

430 stocks of the 2750+ we cover are classified as Technology stocks.

Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. Put another way, research on fund holdings is necessary due diligence because a funds performance is only as good as its holdings performance. Dont just take our word for it,see what Barrons sayson this matter.

Analyzing each holding within funds is no small task. Our Robo-Analyst technology enables us to perform this diligence with scale and provide the research needed to fulfill the fiduciary duty of care. More of the biggest names in the financial industry (seeAt BlackRock, Machines Are Rising Over Managers to Pick Stocks) are now embracing technology to leverage machines in the investment research process. Technology may be the only solution to the dual mandate for research: cut costs and fulfill the fiduciary duty of care. Investors, clients, advisors and analysts deserve the latest in technology to get the diligence required to make prudent investment decisions.

Figures 3 and 4 show the rating landscape of all Technology ETFs and mutual funds.

Figure 3: Separating the Best ETFs From the Worst ETFs

Sources: New Constructs, LLC and company filings

Figure 4: Separating the Best Mutual Funds from the Worst Mutual Funds

Sources: New Constructs, LLC and company filings

This article originally published onApril 11, 2019.

Disclosure: David Trainer, Peter Apockotos, and Kyle Guske receive no compensation to write about any specific stock, sector or theme.

[1]Harvard Business School features the powerful impact of our research automation technology in the case New Constructs: Disrupting Fundamental Analysis with Robo-Analysts.

[2]Ernst & Youngs recent white paperGetting ROIC Rightproves the superiority of our holdings research and analytics.

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Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.