Technology ETFs buy high-tech businesses in the U.S. and sometimes globally. Most concentrate on stocks in companies dealing with computers, semiconductors, software, networking, and the Internet. A few also buy medical-device and biotechnology stocks and some concentrate on a single technology industry. Technology ETFs smooth out some risks by owning a collection of tech stocks rather than just one.
What is the Best Technology ETF?
- XLK: Technology Select Sector SPDR Fund
- IYW: iShares U.S. Technology ETF
- FTEC: Fidelity MSCI Information Technology Index ETF
- VGT: Vanguard Information Technology Index Fund
- IXN: iShares Global Tech ETF
- PTF: Invesco Dorsey Wright Technology Momentum ETF
- XNTK: SPDR NYSE Technology ETF
- IGM: iShares Expanded Tech Sector ETF
- QTEC: First Trust NASDAQ-100-Technology Sector Index Fund
- FXL: First Trust Technology AlphaDEX Fund
| Manager |  | | |  |  | |  |  | |  |
| ETF | IGM | IXN | IYW | FTEC | FXL | QTEC | PTF | XLK | XNTK | VGT |
| Inception | 2001-03-13 | 2001-11-12 | 2000-05-15 | 2013-10-21 | 2007-05-08 | 2006-04-19 | 2006-10-12 | 1998-12-16 | 2000-09-25 | 2004-01-26 |
| MER | 0.41% | 0.41% | 0.40% | 0.084% | 0.62% | 0.57% | 0.60% | 0.10% | 0.35% | 0.10% |
| AUM | $3,784,483,533 | $4,134,875,118 | $12,297,344,296 | $7,850,000,000 | $1,343,889,203 | $3,510,816,856 | $361,700,000 | $58,400,980,000 | $658,980,000 | $48,900,000,000 |
| P/E | 37.80 | 30.86 | 35.51 | 31.93 | 24.38 | 31.94 | 61.79 | 28.20 | 28.41 | 30.2 |
| P/B | 7.93 | 7.30 | 8.44 | 7.93 | 3.92 | 6.72 | 8.17 | 9.63 | 6.61 | 7.0 |
| Yield | 0.38% | 0.54% | 0.39% | 0.66% | 0.19% | 0.16% | 0.14% | 0.74% | 0.30% | 0.63% |
| Distributions | Quarterly | Semi-Annually | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly |
| 1Y | 39.03% | 34.19% | 44.64% | 34.65% | 22.21% | 41.76% | 14.45% | 37.39% | 44.90% | 33.96% |
| 3Y | 8.39% | 12.50% | 13.50% | 12.43% | 4.59% | 7.38% | 3.20% | 15.46% | 5.84% | 12.15% |
| 5Y | 18.17% | 21.11% | 22.61% | 21.71% | 16.25% | 17.38% | 20.18% | 23.48% | 19.32% | 21.56% |
| 10Y | 17.97% | 18.22% | 19.59% | 19.38% | 15.93% | 17.87% | 15.33% | 19.88% | 17.38% | 19.60% |
10. First Trust Technology AlphaDEX Fund
Investment Objective/Strategy – The First Trust Technology AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the StrataQuant® Technology Index.
- The StrataQuant Technology Index is an “enhanced” index developed, maintained and sponsored by ICE Data Indices, LLC or its affiliates (“IDI”) which employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index.
- IDI constructs the StrataQuant Technology Index by ranking the stocks which are members of the Russell 1000 Index on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors.
- Each stock receives either its growth or value score rank as its selection score based on its style designation as determined by Russell. Stocks which Russell allocates between both growth and value receive the better of their growth or value score rank as their selection score.
- IDI then ranks those stocks contained in the technology sector according to their score. The greater of the top 75% of the eligible universe or 40 stocks is selected for the StrataQuant Technology Index.
- If the total count of eligible stocks in the technology sector falls below 40, all eligible stocks will be included.
- The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted within each quintile.
- The index is reconstituted and rebalanced quarterly.
9. First Trust NASDAQ-100-Technology Sector Index Fund
The First Trust NASDAQ-100-Technology Sector Index Fund is an exchange-traded index fund. The investment objective of the Fund is to replicate as closely as possible, before fees and expenses, the price and yield of the Nasdaq-100 Technology Sector Index.
- The Index consists of companies in the Nasdaq-100 Index classified as Technology according to Industry Classification Benchmark (ICB)
- The Index is reconstituted once a year based on the Nasdaq-100 reconstitution in December, but replacements may be made during the year if there is a replacement in the Nasdaq-100 Index
- The Index is an equal-weighted index and is rebalanced four times annually in March, June, September and December
8. iShares Expanded Tech Sector ETF
The iShares Expanded Tech Sector ETF seeks to track the investment results of an index composed of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
- Broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors
- Access to hardware, software, internet marketing, interactive media, and related companies
- Use to express a view on North American technology-related companies
7. SPDR NYSE Technology ETF
The SPDR NYSE Technology ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the NYSE Technology Index.
- The NYSE Technology Index is composed of 35 leading US-listed technology-related companies.
- The Index is equal-weighted at its annual rebalance
- The index comprises stocks in the Information Technology sector and technology-related stocks in the Consumer Discretionary sector
6. Invesco Dorsey Wright Technology Momentum ETF
The Invesco Dorsey Wright Technology Momentum ETF (Fund) is based on the Dorsey Wright Technology Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security’s performance in a given universe over time as compared to the performance of all other securities in that universe. The Fund and the Index are rebalanced and reconstituted quarterly.
5. iShares Global Tech ETF
The iShares Global Tech ETF seeks to track the investment results of an index composed of global equities in the technology sector.
- Exposure to electronics, computer software and hardware, and informational technology companies
- Targeted access to technology stocks from around the world
- Use to express a global sector view
4. Vanguard Information Technology Index Fund
Vanguard Information Technology Index Fund ETF Shares (VGT) seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector.
- Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate
- Includes stocks of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science
3. Fidelity MSCI Information Technology Index ETF
Fidelity MSCI Information Technology Index ETF (FTEC) seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Information Technology Index. Investing at least 80% of assets in securities included in the fund’s underlying index. The fund’s underlying index is the MSCI USA IMI Information Technology Index, which represents the performance of the information technology sector in the U.S. equity market.
Using a representative sampling indexing strategy to manage the fund. “Representative sampling” is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the index. The securities selected are expected to have investment characteristics, fundamental characteristics and liquidity measures similar to those of the index. The fund may or may not hold all of the securities in the MSCI USA IMI Information Technology Index.
2. iShares U.S. Technology ETF
iShares U.S. Technology ETF (IYW) seeks to track the investment results of an index composed of U.S. equities in the technology sector.
- Exposure to U.S. electronics, computer software and hardware, and informational technology companies
- Targeted access to domestic technology stocks
- Use to express a sector view
1. Technology Select Sector SPDR Fund
Technology Select Sector SPDR Fund (XLK) seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index.
- The Index seeks to provide an effective representation of the technology sector of the S&P 500 Index
- Seeks to provide precise exposure to companies from technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components.
- Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing
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| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $12.99 CAD $9.99 USD |
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