7 Best Tech ETFs to Buy in 2024

There have been some big winners in the technology industry in recent years, but there has also been a lot of disruption. This is especially true after the stock market downturn in early 2023, when many investors feared picking individual tech stocks.

Digital rendering of a skyscraper with internet symbols such as WiFi and Bluetooth overlaid on the web.

Image source: Getty Images.

This is where exchange-traded fund (ETF) investing comes into play. There are some great ETFs that focus on the entire technology sector or specific parts of it. These give you exposure to high-potential technology areas within your portfolio without the risks associated with investing in individual companies. In this article, we discuss seven top technology ETFs that are worth checking out for investors looking to add diversified technology exposure to their portfolios.

7 Best Tech ETFs

7 Best Tech ETFs

Total assets as of May 31, 2023. Data source: Each fund’s website.

ETF name
(ticker symbol)

Total assets


Vanguard Information Technology ETF (NYSEMKT:VGT)

65 billion dollars

Broad technology field

Technology Select Sector SPDR ETF (NYSEMKT:XLK)

$47 billion

Broad technology field

VanEck Semiconductor ETF (NASDAQ:SMH)

9 billion dollars


iShares Cybersecurity and Technology ETF (NYSEMKT:IHAK)

$564 million

cyber security stocks


$187 billion

NASDAQ listed stocks

Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT:RSPT)

3 billion dollars

Broad technology sector but unweighted


8 billion dollars

Proactive management focused on high-growth technologies

Let’s take a closer look at each of these ETFs.

1. Vanguard Information Technology ETF

1. Vanguard Information Technology ETF

Vanguard is known for its low-cost index funds.of Vanguard Information Technology ETF It certainly falls into this category, with the lowest value being 0.10%. expense ratio. This means that for every $10,000 invested, your annual cash outlay is only $10.

This ETF tracks a broad index of U.S. tech companies of all sizes.However, that As it is a market capitalization weighted ETF, the top holdings account for the majority of assets. In fact, the top three holdings are — apple (AAPL -1.06%), microsoft (MSFT -0.17%), and Nvidia (NVDA 0.12%) — represents nearly 50% of the fund’s total assets. In other words, ETFs are A set-it-and-forget method for investing across the information technology sector.

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.


Semiconductors are basic elements or compound materials that conduct electricity under certain circumstances.

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.


Assets are resources used to preserve or create economic value.

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.

Related investment topics

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.

John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP® works at Amazon. The Motley Fool has positions in Advanced Micro Devices, Alphabet, Amazon, Apple, Applied Materials, Coinbase Global, CrowdStrike, Fortinet, Microsoft, Nvidia, Okta, Palo Alto Networks, Roku, Taiwan Semiconductor Manufacturing, Tesla, UiPath, and Zoom. , these are recommended for video communication. The Motley Fool has a disclosure policy.

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