The holiday season officially kicked off on Thanksgiving, but this year’s Black Friday may not be as merry for retailers or shoppers. A Deloitte survey released Nov. 24, 2025, cited by CNBC, shows that consumers plan to spend an average of $622 between Nov. 27 and Dec. 1, down 4% from last year. Overall holiday spending is expected to average $1,595 per consumer, a 10% decline from 2024, reflecting inflationary pressures and tighter household budgets.

Value-Driven Shopping Trends

Shoppers are increasingly hunting for bargains. Deloitte notes that seven in ten consumers across income groups are focused on value, with 78% of women and 58% of men actively seeking cheaper alternatives. Many are turning to lower-priced retailers, redeeming loyalty points, and choosing handmade gifts over mass-market items.

This consumer emphasis on value is mirrored in the investment world, where budget-conscious investors may look for undervalued assets. In particular, tech ETFs trading below broader market multiples are attracting attention.

Tech Stocks and Market Dynamics

Tech equities surged on Nov. 24, 2025, marking the biggest rally since May, driven by optimism over a potential Federal Reserve rate cut. Despite this, major indices are still on track for monthly losses, as investors reassess sky-high valuations in AI and growth stocks. The Technology Select Sector SPDR Fund (XLK) has gained 20.6% year-to-date, though it lost 6.5% over the past month.

AI Sector Concentration Risks

Investors are watching AI closely. Karen McCormick, CIO at VC firm Beringea, warns that interconnected investments between major AI players—such as NVIDIA and Microsoft planning up to $15 billion in Anthropic—could heighten systemic risk if an AI bubble bursts. Still, she notes that these companies have strong balance sheets and deep-pocketed backers, making outright collapse unlikely.

Undervalued Tech ETFs to Watch

For investors seeking value in tech, several ETFs currently trade at lower price-to-earnings ratios than the broader iShares U.S. Technology ETF (IYW, P/E 42.36X). According to etfdb.com, some options include:

• Invesco Next Gen Connectivity ETF (KNCT) – P/E: 20.98X
• Invesco S&P 500 Equal Weight Technology ETF (RSPT) – P/E: 22.74X
• SPDR S&P Software & Services ETF (XSW) – P/E: 22.99X
• SPDR S&P Kensho Future Security ETF (FITE) – P/E: 23.16X
• Invesco AI and Next Gen Software ETF (IGPT) – P/E: 23.45X

With holiday spending tightening and tech valuations under pressure, value-oriented ETFs may provide a strategic opportunity for cautious, long-term investors.