5 ETFs to Play the Burgeoning Corporate Buybacks
- Corporate Buyback Trend: Corporate America is showing bullishness in the U.S. economy with a surge in stock buybacks, totaling over $383 billion in the past 13 weeks.
- Recent Buyback Trends: Share repurchases increased significantly in Q4 of 2023 compared to previous quarters, driven by companies with strong cash flows opting for aggressive buybacks.
- Resilience Amid Economic Uncertainty: Despite recession projections in 2023, the U.S. economy's resilience in 2024 has led to increased buyback activities, reflecting confidence in the market.
- ETFs Reflecting Buyback Activity: Various ETFs like Invesco BuyBack Achievers ETF (PKW), Technology Select Sector SPDR ETF (XLK), Vanguard S&P 500 ETF (VOO), WisdomTree U.S. LargeCap ETF (EPS), and Pacer US Cash Cows 100 ETF (COWZ) are highlighted as investment options based on the buyback trend.
- Investment Opportunities: The buyback trend indicates higher earnings potential, management confidence, and attractive valuations, making these ETFs potentially beneficial for investors seeking exposure to companies engaging in buybacks.
Trade with 70% Backtested Accuracy
Analyst Views on XLK
About the author


Technology Sector Performance: The technology sector saw a 4% surge on Friday, as indicated by the State Street Technology Select Sector SPDR ETF.
Weekly Closing Status: Despite the Friday surge, the ETF closed the week down 1.9%, marking its second-largest trading volume in nearly four years.
2026 Performance Context: Technology remains the worst-performing sector among the 11 S&P sectors in 2026, with a decline of 2%.
Market Trends: The fluctuations highlight ongoing volatility and challenges within the technology sector amidst broader market conditions.

Technology Sector Performance: The technology sector saw a 4% surge on Friday, as indicated by the State Street Technology Select Sector SPDR ETF.
Weekly Closing Status: Despite the Friday surge, the ETF closed the week down 1.9%, marking its second-largest trading volume in nearly four years.
2026 Performance Context: Technology remains the worst-performing sector among the 11 S&P sectors in 2026, with a decline of 2%.
Market Trends: The fluctuations highlight ongoing volatility and challenges within the technology sector amidst broader market conditions.
Technology Stocks Struggle: Technology stocks have experienced a challenging earnings season, indicating potential issues within the sector.
Other Sectors Performing Well: Despite the struggles in technology, most other sectors are showing resilience, which is a positive indicator for investors.

Tech Sector Performance: The technology sector has had a sluggish start to the year, with major ETFs like SPDR S&P Technology (XLK) and Invesco QQQ Trust (QQQ) struggling to gain traction, primarily due to underperformance in mega-cap tech stocks.
Earnings Season Impact: The upcoming earnings reports from major tech companies such as Microsoft, Tesla, and Meta Platforms are anticipated to significantly influence the sector's performance, with analysts predicting varying levels of growth and potential challenges.
Investor Sentiment: Investors are closely monitoring AI-related capital expenditures and guidance from these companies, as spending discipline and growth orientation will be crucial for future stock performance.
Market Outlook: The overall sentiment in the tech sector remains cautious, with major ETFs sitting just below breakout levels, and the upcoming earnings reports could determine whether the sector breaks into new highs or remains stagnant.
Impact of a Single Company: A single company's performance can significantly influence the price-weighted Dow Jones Industrial Average.
Price-Weighted Index: The Dow Jones Industrial Average is structured as a price-weighted index, meaning that companies with higher stock prices have a greater impact on the index's movements.
Impact of a Single Company: A single company's performance can significantly influence the price-weighted Dow Jones Industrial Average.
Price-Weighted Index Explanation: The Dow Jones Industrial Average is a price-weighted index, meaning that companies with higher stock prices have a greater impact on the index's overall movement.







