Top 12 Best Technology ETFs to Buy (Higher Profit Margins and Returns)
Various advancements in technology have affected the way of our life and have also affected the way you can invest. Many investment firms have resorted to moving their investments to digitally allow you to access the investment using technology. They always reach out to many investors by storing their data in the cloud that results in generating higher profit margins and returns.
Before we get into knowing the best technological Exchange Traded Funds, it good that we first understand why it is a better choice to invest in such funds.
Why Should I Buy Technology ETFs?
The technology ETFs comes with a good number of advantages that will lure you to buying them. Among the reasons why you need to buy the Technology ETFs include;
· They are highly diversified; one technology ETF can give you exposure to different equities, including the segments, styles, or market.
· Lower fees; the technology ETFs that are passively managed require you to incur a much lower expense ratio than mutual funds.
· They offer Reinvested dividends immediately.
· Limited Capital Gains Tax; the technology ETFs are more tax-efficient than the mutual funds, making them cheap.
These and many more factors give you a reason to invest in Technology ETFs.
What Are the Best Technology ETFs?
1. Technology Select Sector SPDR Fund
2. Vanguard Information Technology ETF
3. S&P Technology Dividend Aristocrats ETF
4. Global X Cloud Computing ETF
5. iShares Expanded Tech Sector ETF
6. First Trust cloud Computing ETF
7. iShares U.S. Technology ETF
8. Fidelity MSCI Information Technology Index ETF
9. INVESCO S&P SmallCap Information Technology ETF
10. First Trust Dow Jones Internet Index Fund
11. Global X Telemedicine & Digital Health ETF
12. ROBO Global Artificial Intelligence ETF
1) Technology Select Sector SPDR Fund
This is a large-cap ETF that is broadly diversified and tracks the Technology Select Sector Index. Its three major holdings include Apple, Microsoft Corp, and Nvidia.
You can trust Technology Select Sector SPDR Fund as it tracks the performance of high yielding technology select sector index that represents the technology and telecom sectors that fall between the S$P 500 index.
If you need exposure to technology software, hardware, semiconductors, IT services, and even communications, then Technology Select Sector SPDR Fund is the best fund you can trust. You will only be required to incur an expense ratio of 0.13%.
2) Vanguard Information Technology ETF
Vanguard Information Technology ETF specifically tracks MSCI US IMI information Technology 25/50 Index. The index consists of small, medium, and large firms that are aligned to the technology sector.
Vanguard Information Technology ETF gives you a wide technology portfolio exposure to large-cap companies that assures you more consistent revenue streams and even stronger balance sheets that are helpful in times of uncertainties.
Vanguard Information Technology ETF’s major holdings include Microsoft, Visa, MasterCard, and Intel. You will only incur an expense ratio of 0.10% to invest in this technology ETF.
3) S&P Technology Dividend Aristocrats ETF
S&P Technology Dividend Aristocrats ETF focuses on investing in well-established companies that have maintained a rise in their income for the last seven years. For S&P Technology Dividend Aristocrats ETF to invest in a firm, the specified firm must have raised a stable income, showed strong traces of growth, and showed solid fundamentals.
S&P Technology Dividend Aristocrats ETF sets all these standards to make sure that your investments yield solid and assured dividends. The fund’s leading holdings include Xilinx and Booz Allen Hamilton.
Even with such a promising dividend yield, S&P Technology Dividend Aristocrats ETF requires a low expense ratio for you to invest in it.
4) Global X Cloud Computing ETF
Global X Cloud Computing ETF invests in firms that work in cloud-based that include software development and firms that manufacture and distribute hardware.
The cloud-based investment has gained momentum since everyone wants to receive data and information remotely without physical measures. This makes Global X Cloud Computing ETF the best tech ETF you can invest in 2021.
5) iShares Expanded Tech Sector ETF
This ETF owns stocks of firms that deal with software, hardware, internet marketing, and even the interactive media industries based on the consumer discretionary sectors and communication services.
iShares Expanded Tech Sector ETF’s common interest sectors are the most commonly consumed services that assure you high income for your investment.
It has its main shares distributed in Adobe, Microsoft, Oracle, Intuit, and even Salesforce. iShares Expanded Tech Sector ETF only requires you to incur an expense ratio of 0.46% to invest with it.
6) First Trust Cloud Computing ETF
First Trust Cloud Computing ETF also invests in cloud computing companies that allow their user to access the data on their database from anywhere. This tech ETF includes well-known companies like Twilio- an IT service company that allows users to access text messages and even voice calls, Amazon.com, an hosting and connectivity behemoth, and the enterprise software platform company Oracle.
The Tech ETFs like First Trust Cloud Computing ETF remains at the helm even when the dollar is experiencing a fall in the market.
With an expense ratio of 0.52%, you can comfortably invest with First Trust Cloud Computing ETF.
7) iShares U.S. Technology ETF
This Tech ETF owns a good number of stocks in the U.S. computer hardware and software, electronics, and informational technology companies.
For the last 20 years, the tech sector produced a total return of 172% compared to other sectors that produced about 63%. This gives you every reason to trust your investment with the iShares U.S. Technology ETF.
iShares U.S. Technology ETF tracks its stock on well-established firms like Facebook, Intel, Microsoft, Apple, and even Google. Its assets are estimated to be over $4.8 billion and require you to incur an expense ratio of 0.42% on your investment plan.
8) Fidelity MSCI Information Technology Index ETF
This Tech ETF is designed to tracks the well-being of the MSCI USA IMI Information Technology index. For you to buy Fidelity MSCI Information Technology Index ETF, you need to incur an expense ratio of 0.08%.
Fidelity MSCI Information Technology Index ETF exposes you to the U.S based information technology firms and has its holdings majorly on Apple, Visa, Microsoft, and even MasterCard.
With Fidelity MSCI Information Technology Index ETF, you will enjoy a high number of stocks, not less than 320 stocks. Its top 10 stocks have a weighting of about 598%.
9) INVESCO S&P SmallCap Information Technology ETF
INVESCO S&P SmallCap Information Technology Portfolio enjoys a large base of assets of over $240.5 million with a dividend yield of 0.2%. It allows you to invest on it with a low expense ratio of 0.29%.
If you need exposure to different tech segments like the semiconductor equipment and semiconductors, electronic gadgets, software, instruments and components, and any other IT services, then INVESCO S&P SmallCap Information Technology Portfolio makes the best Tech ETF to invest with.
With INVESCO S&P SmallCap Information Technology Portfolio you will also get to interact with top holdings like Brooks Automation, AI Chatbot Developer LiverPerson and Home-security Company Alarm.com.
10) First Trust Dow Jones Internet Index Fund
This ETF fund is interested in over 40 U.S. companies that generate at least 50% of their annual revenue from the internet. It runs over $10.3 billion in assets and requires you as an investor to incur an expense ratio of 0.52%.
If you invest with First Trust Dow Jones Internet Index Fund, you will get an opportunity to interact with big names like Amazon.com, Facebook, and Netflix.
11) Global X Telemedicine & Digital Health ETF
Global X Telemedicine & Digital Health ETF has shares in over 33 holdings that deal with technological advancements in finance and deals with big technology like PayPal.
Global X Telemedicine & Digital Health ETF manages around $755.8 million in assets that assure you of your investment. You will only require an expense ratio of 0.68% to invest with Global X Telemedicine & Digital Health ETF.
12) ROBO Global Artificial Intelligence ETF
ROBO Global Artificial Intelligence ETF is one of the latest Tech ETFs launched in May 2020 that gives you the purest way to invest in 2021.
It is divided into two main classifications that you can choose depending on your interest; the Infrastructure that deals with businesses, the range between big data and cloud providers to semiconductors, and the Applications & services that deal with e-commerce and consulting services.
Now that every sector is moving online and digital, so are the investment plans. Technology ETFs give you an opportunity to access them at the comfort of your home worldwide, giving them a great number of investors. This gives you an assurance of your investment of dividends on your investments.