iShares Global Tech ETF [IXN] Stock Forecast

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Although the IPO market is currently stagnant, there is still an anticipation of a gradual increase in activity in the near future, especially in summer months, per Renaissance Capital.

While picking individual market ideas may offer the biggest chance for upside, the process carries risks, which is where the best tech ETFs to buy may earn their keep. Fundamentally, exchange-traded funds offer a broad range of stocks under one basket, thus limiting risk while maximizing success.

IXN is a highly concentrated ETF that invests in technology stocks in the U.S., East Asia, and Europe. Top holdings Microsoft and Apple currently comprise 37% of total portfolio, making this ETF very growth-oriented.

The technology sector, which had its best January in decades, faltered lately following a slew of weak earnings reports from the tech titans and renewed rising rate concerns.

IXN invests in global tech stocks, with a United States bias. The fund could be argued as pricey if we assume a large drop in the underlying return on equity (and hence earnings growth).

Arguably, the world's top-two semiconductor makers - Taiwan Semiconductor and Samsung - both reside outside of the United States. With an estimated 87% of global semiconductor foundry capacity located in Taiwan, South Korea, and China, does a global technology ETF make sense?

Microsoft (MSFT) ended its long track of beating estimates by missing on both earnings and revenues but issued an optimistic growth forecast.

IXN invests in tech stocks around the world, albeit with a significant allocation to U.S. stocks. The fund is, on the balance of probabilities, probably undervalued after the global equity market rout this year.

The world's largest software maker ??? Microsoft (MSFT)?