ETFs invest in the stocks of companies providing technology hardware, software, and services. They include Apple, Amazon, Facebook, Microsoft, Cisco, Nvidia, and more. Some tech ETFs also have medical devices stocks in their portfolio.’ data-reactid=”13″>Technology ETFs invest in the stocks of companies providing technology hardware, software, and services. They include Apple, Amazon, Facebook, Microsoft, Cisco, Nvidia, and more. Some tech ETFs also have medical devices stocks in their portfolio.
shift your focus from long-term investing to short-term gains.’ data-reactid=”28″>An ETF tracks a benchmark index. Instead of outperforming the index, the ETF aims to match its performance. ETFs are listed on a stock exchange and trade like a regular stock. You can trade shares of an ETF throughout the trading day. But this ability to buy and sell shares throughout the day could shift your focus from long-term investing to short-term gains.
Ranked: The ten largest technology ETFs
With $2.6 billion in assets, KWEB invests in China-based technology companies listed in both the US and Hong Kong. It gives you exposure to companies that benefit from China’s massive market and a growing middle-class. Some of its largest holdings are Alibaba, Tencent, Meituan Dianping, and Baidu. It has an expense ratio of 0.76%, higher than any other ETF on this list.
9- First Trust NASDAQ 100 Tech Sector ETF (QTEC), $2.8 billion
The First Trust NASDAQ-100-Tech Sector ETF mimics the performance of the NASDAQ-100 Technology Sector Index. It’s an equal-weighted index comprising of Nasdaq-listed technology companies such as Apple, Amazon, Netflix, and others. Launched in 2006, QTEC has an expense ratio of 0.57%.
8- iShares Global Tech ETF (IXN), $3.2 billion
Launched in 2001, IXN has nearly two decades of track record. Its expense ratio is 0.46%. It tracks the S&P Global 1200 Information Technology Sector Index, giving you exposure to global IT, hardware, software, and electronics companies. It has delivered an impressive annualized return of 15.34% over the last decade.
7- iShares Expanded Tech-Software Sector ETF (IGV), $3.3 billion
IGV is designed to track the S&P North American Expanded Technology Software Index. Its total expense ratio is 0.46% and AUM is $3.3 billion. IGV invests primarily in the stocks of software, interactive media, and related companies. Its largest holdings are Adobe, Microsoft, Salesforce, Oracle, and Intuit.
6- Fidelity MSCI Information Technology Index ETF (FTEC), $3.39 billion
FB), and Intel (INTC). The ETF has delivered an impressive 18.54% annualized return over the last five years.’ data-reactid=”42″>Launched in 2000, IYW tracks the performance of the Dow Jones U.S. Technology Capped Index. The ETF has $4.8 billion in assets. Its expense ratio is 0.42%. IYW invests primarily in the US technology stocks. Its largest holdings are Microsoft, Apple, Google, Facebook (FB), and Intel (INTC). The ETF has delivered an impressive 18.54% annualized return over the last five years.
4- First Trust Dow Jones Internet Index ETF (FDN), $7.8 billion
FDN is the fourth largest technology ETF with $7.8 billion in assets. Its expense ratio is 0.52%. It tracks the performance of Dow Jones Internet Composite Index, which consists of 40 most-traded and largest US internet stocks. Its largest holdings are Amazon, Facebook, Netflix, Salesforce, and Paypal.
3- Vanguard Information Technology ETF (VGT), $26.3 billion
Just like most other Vanguard funds, VGT has a pretty low expense ratio of just 0.10%. It tracks the performance of the MSCI US IMI Information Technology 25/50 Index. It has invested in more than 300 US technology stocks. VGT’s largest holdings are Apple, Microsoft, Visa, Mastercard, and Intel. The top ten holdings have a staggering 57.8% weightage in its portfolio.
2- Technology Select Sector SPDR Fund (XLK), $26.7 billion
XLK is one of the most popular technology ETFs among the American investors. Launched in 1998, the ETF has an expense ratio of just 0.13%. It tracks the performance of the Technology Select Sector Index, which represents the technology and telecom sectors within the S&P 500 index. The ETF gives you exposure to technology hardware, software, communications, semiconductors, and IT services companies.
1- Invesco QQQ ETF (QQQ), $90.6 billion