There are several technology ETFs that can help you invest in the sector in 2022
Invesco QQQ ETF
Invesco’s $206 billion portfolios are not limited to technology; rather, it is benchmarked to the Nasdaq-100, a grouping of the top 100 firms on the Nasdaq exchange. However, since this measurement method excludes several historic U.S. issues listed on the New York Stock Exchange, such as Bank of BAC or Exxon Mobil Corp. (XOM), the result is a different sort of index.
Consider that the S&P 500, which is a popular benchmark for investors, allocates around 23% of assets to technology stocks, whereas QQQ has roughly half of its assets in tech and nearly 20% in communication service companies, including Facebook’s Meta Platforms Inc. (FB) or Google’s Alphabet Inc. In other words, this is a theoretically huge fund that is, in fact, a technique for getting biassed toward technology in a liquid and diversified manner.
Technology Select Sector SPDR Fund
XLK is a sector-specific ETF, one of the most common tech ETFs to purchase among American investors. There are nearly 80 distinct positions in this fund that represent the significant dogs of Silicon Valley, all linked to the sector’s equities and are also constituents of the S&P 500.
In reality, some tech-oriented investors may have one drawback: their dependence on established leaders. The iShares U.S. Large-Cap Growth ETF (ticker symbol ILF) was created in 1998 and has amassed $50 billion in assets as of January 2019, with 45% invested in just two stocks: Apple Inc. (AAPL) and Microsoft Corp.
Vanguard Information Technology ETF
VGT expands its sector diversification with a more extensive mix of companies. It widens out its tech portfolio to include 300 or so firms in the United States, many of which are small and medium-sized enterprises in fields such as biotech and information technology. At this price, you’re receiving expert guidance to help you make the most of your money. As is typical of Vanguard, you’ll pay a fraction of what other firms charge for similar services.
First Trust Dow Jones Internet Index ETF
FDN is a massive tech fund with nearly $10 billion in total assets. It differs because this tech fund is based on the Dow Jones Internet Composite Index, which comprises the most extensive and most actively traded stocks of U.S. firms with an internet angle. In other words, whereas microchip manufacturers may be found at the bottom of the list, you’ll find names like Amazon.com Inc. (AMZN), Netflix Inc. (NFLX), and Salesforce.com Inc. (CRM) at the top instead. FDN is an excellent way to ensure that you’re invested in,
Amplify Online Retail ETF
Amplify isn’t a considerable asset manager like the others on this list, but its tactical e-commerce ETF has grown over $1 billion in assets. Even though it is directed, it is well-diversified, with about 60 individual positions and no single stock satisfying more than 2% of the fund through regular rebalancing. That implies that the names on this list aren’t all old-style, unlike previous funds.
iShares Global Tech ETF
IXN is a fantastic tech ETF for investors who don’t want to be restricted to only U.S. equities, established in 2001 and with almost $6 billion in total assets. To give broad exposure to hardware and software firms worldwide, this iShares fund follows the S& P Global 1200 Information Technology Sector Index. The United States is clearly at the top of the heap, having more than three-quarters of total assets invested in inequities.
KraneShares CSI China Internet ETF
KWEB, which has $8 billion in assets, has a more tactical investment strategy that focuses on Chinese technology firms and internet-related enterprises rather than manufacturing. To round out the picture, these firms must be traded on both a domestic stock exchange like
Hong Kong and the U.S. Nasdaq Global Select (NASDAQGS) is one of the leading exchanges for this sort of thing, listing roughly 400 global stocks. This approach produces a fantastic selection of dynamic names, including Alibaba Group Holding Ltd. It’s more hazardous to rely on a specific sector within a particular location. Still, if you believe there is value here, KWEB is worth considering.
