The Technology Select Sector SPDR (XLK) may be down over 8% so far this year, but investors should not give up on the ETF or the growth companies it holds just yet, said David Mazza, head of research State Street Global Advisors Funds. 'We know economic growth is going to be low and slow in 2016, yet the technology sector is delivering earnings growth that is significantly higher than what we can find in the broader market,' said Mazza. Mazza added that consumers, who remain robust due to lower energy prices, are focused on technology for necessities like new phones and corporate America is spending more on technology services like cybersecurity. He also said the SPDR FactSet Innovative Technology ETF (XITK), which launched last week, should shine in the coming year. The new ETF holds emerging technology companies like Rovi (ROVI), Super Micro Computer (SMCI), Splunk (SPLK), Medidata Solutions (MDSO) and Tableau Software (DATA). 'All the folks in Davos are talking about this fourth industrial revolution and by focusing on innovative technology companies that are growing their earnings north of 20% as some are can be a great way for investors to harness a long term theme but add a boost of earnings to their portfolio,' said Mazza. The SPDR Barclays High Yield Bond ETF (JNK) is down 4.5% thus far in 2016 after falling 16% in 2015. Mazza said that he is well aware of the problems in the high yield space, but investors need to look at the sector as part of an overall asset allocation. 'We’ve seen the yield of junk bond indices double in the past year as energy concerns have taken over that space,' said Mazza.

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