7 Best Tech ETFs to Buy in 2024

2. Technology Select Sector SPDR ETF

2. Technology Select Sector SPDR ETF

of Technology Select Sector SPDR ETF State Street (STT 1.48%). This is very close to the Vanguard Fund, offering a similar asset size, the same 0.10% expense ratio, and tracking a similar index. In fact, the fund’s top holdings (and their respective weights) are identical to the Vanguard example.

Both the Vanguard ETF and the Technology Select ETF offer broad exposure to the information technology sector. It’s hard to say one is better than the other. Investors who just want to invest in “tech stocks” can’t go wrong with either choice.

3. VanEck Semiconductor ETF

3. VanEck Semiconductor ETF

From here, we will examine specific ways to invest in high-tech stocks through ETFs.of VanEck Semiconductor ETF Tracks an index of semiconductor manufacturers, commonly known as chip manufacturers.

This is a market-cap weighted fund, so (not surprisingly) Nvidia is the fund’s largest holding. Others include: taiwan semiconductor (TSM -0.47%), broadcom (NASDAQ:BRCM), Advanced Micro Devices (AMD 0.5%), texas instruments (NYSE:TXN), and applied materials (Amat -0.85%).

The expense ratio for ETFs is slightly higher at 0.35%. However, it’s important to note that investors should expect to pay a little more for specialized ETFs like this.

4. iShares Cybersecurity and Technology ETF

4. iShares Cybersecurity and Technology ETF

It seems like there’s a major data breach every two weeks, and threats (especially in the cloud) are getting more sophisticated. Investing in cybersecurity stocks can be an interesting opportunity for patient long-term investors. iShares Cybersecurity and Technology ETF You can focus your money on this technology subsector.

This ETF has an expense ratio of 0.47%, which is on par with other ETFs of similar size and specialization. It aims to track an index of cybersecurity stocks.Top holdings include: cloud strike (CRWD -0.52%), fortinet (FTNT 1.55%), palo alto networks (Panwoo 0.66%), Octa (Octa -0.29%) and many other names you may recognize.

5. Invesco QQQ ETF

5. Invesco QQQ ETF

For a discussion about tech ETFs, Invesco QQQ ETF. This is by far the largest ETF tracking the Nasdaq. QQQ ETF has a relatively low expense ratio of 0.20%. Nasdaq-100 The index is essentially an index of the largest stocks listed on the NASDAQ exchange.

To be perfectly clear, the QQQ ETF is not a pure tech ETF. It’s just very technology-heavy. More than 50% of the fund’s assets are invested in the tech sector, with a further 17% invested in telecommunications stocks. Apple, Microsoft, Amazon (AMZN 0.31%), alphabet (Google 0.04%)(google 0.21%), NVIDIA.

The Invesco QQQ ETF may be suitable for investors who want passive exposure to a tech-focused portfolio but don’t want to rely on it. exclusively About the technology field.

6. Invesco S and P 500 Equal Weight Technology ETF

6. Invesco S&P 500 Equal Weight Technology ETF

One of the key risk factors for all five ETFs we’ve discussed so far is that they are fairly top-heavy. These are market cap weighted and are very concentrated in just a few stocks, as there are some blue-chip tech stocks with market caps in the trillions of dollars.For example, Apple over 20 Both the Vanguard ETF and SPDR ETF discussed earlier.

of Invesco S&P 500 Equal Weight Technology ETF aims to create a truly diverse basket of tech stocks. This ETF allocates an equal amount of assets to every company in the index it tracks. In other words, relatively small companies included in the index, e.g. hewlett packard enterprise (HPE 0.34%), receive the same exposure as large companies like Microsoft and Nvidia.

The expense ratio of 0.40% is quite reasonable for such a unique ETF. This could be a smart move for investors who don’t want their investment returns to depend too much on the success of a particular company.

7. Ark Innovation ETF

7. Ark Innovation ETF

The first six ETFs have one major characteristic: they are all passive funds. In other words, they are all designed to simply track a stock index and match its performance over time.

In contrast, the Ark Innovation ETF is actively managed by renowned investor Cathie Wood and her team. The goal is beat Designed to take advantage of innovative, fast-growing technology companies. The fund’s five largest holdings are: tesla (TSLA -2.25%), zoom (ZM -1.88%), Roku (Roku -0.62%), UiPath (path -0.48%), and coinbase (coin 3.28%).

The idea is to invest the Fund’s assets in whatever opportunities seem most attractive at the time. In doing so, the Ark Innovation ETF aims to outperform the overall technology sector. The fund hasn’t performed particularly well amid the market downturn. But if you’re looking for the potential to outperform the market over the long term, this ETF is worth a closer look.

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Key points to investing in tech ETFs

Key points for investing in tech ETFs

As you can see, not all tech ETFs are the same. Some track broad indexes of tech companies. Some track a more specialized basket of stocks. Others take an active management approach or value their portfolios differently.

If you’re considering adding technology exposure to your portfolio, the best course of action is to compare each to see which one best suits your goals and risk tolerance.