Technology ETFs provide concentrated exposure to the sector driving much of the market's growth. From broad tech funds to focused semiconductor and software ETFs, there are many ways to invest in technology.
Our 5-factor model ranks tech ETFs based on cost efficiency, recent performance, momentum, liquidity, and tracking quality.
Top 5 Best Tech ETFs
Rankings based on our 5-factor quantitative model. Data refreshed daily. Past performance does not guarantee future results.
Top 3: A Closer Look
These technology ETFs earned the highest scores in our quantitative model.
1. SMH — SMH
SMH earns a composite score of 80.0 with an expense ratio of — and AUM of —. The fund currently holds a Strong Buy rating. View full SMH analysis.
2. XLK — XLK
XLK earns a composite score of 58.0 with an expense ratio of — and AUM of —. The fund currently holds a Hold rating. View full XLK analysis.
3. IGV — IGV
IGV earns a composite score of 50.0 with an expense ratio of — and AUM of —. The fund currently holds a Hold rating. View full IGV analysis.
Methodology
Tech ETFs are scored against their sector peers, accounting for the higher volatility and growth characteristics of the technology sector.
Momentum is particularly relevant for tech ETFs, as the sector tends to exhibit strong trend behavior.
View all ETF rankings for the full 5-factor model applied across 600+ ETFs.
How to Use This List
Tech ETFs work well as satellite holdings that complement a diversified core portfolio. Consider your overall sector exposure before adding concentrated tech positions.
For broader tech exposure, look at funds like QQQ or VGT. For focused bets, consider semiconductor or software-specific ETFs.
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Frequently Asked Questions
Is QQQ a tech ETF?
QQQ tracks the Nasdaq-100, which is heavily weighted toward technology (~50%) but also includes consumer, healthcare, and other sectors. It is tech-heavy but not a pure tech fund.
Should I invest in tech ETFs?
Tech ETFs can be a good addition to a diversified portfolio, but they carry sector concentration risk. Make sure technology does not become an outsized portion of your overall portfolio.
Important Disclaimer
This content is for informational purposes only and does not constitute investment advice. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Blank Capital Research is not a registered investment advisor.