A Standout Tech ETF

Given that MTK has shown itself to be more volatile, it might be a tougher hold for some investors.

I'm not a fan of Microsoft, but many investors feel an emotional attachment. So in acknowledging this need, an investor wanting equal weight (15% of the S&P 500) exposure to the sector without a lot of relative volatility could own 9% in MTK, 3% in Microsoft and 3% in iShares Taiwan, which has held in nicely since I wrote about it on Oct. 6, given the strength of the U.S. dollar.

The above allocation is not the most conservative path an investor can take in the tech sector, let's be clear about that. But it offers ETF investors who have a higher tolerance for volatility a blend within the sector. And it offers a smaller market cap with foreign exposure, which has a good shot to outperform over longer periods of time.

The bullish case for tech right now includes the fact that growth has lagged value for a while, and tech has not had much of its usual leadership role in a long time. Also, there has been a lot of innovation in the sector the past couple of years, and there's visibility for more, which may not be adequately priced in across the entire sector. The downside is poor visibility for corporate spending, and the market punishes stocks that have bad news.