When it comes to Exchange Traded Funds(ETFs), the technology sector has always been of interest. This is the sector that includes organizations focused on research, development, and sale of hardware and software. Typically you will find giants like Amazon and Microsoft in this group, but there are a lot of fast-growing companies that may escape the radar of many investors and traders. With that being said, let’s take a look at some of the best tech ETFs you can look out for in July.
- Invesco NASDAQ Internet ETF(PNQI)
Invesco NASDAQ Internet ETF is a non-diversified ETF that tracks the returns of NASDAQ CTA Internet Index. It consists of almost 90% of the assets belonging to the index. It has almost $1 billion in net AUM and a Y-T-Y daily return of 3.85%. Facebook is one of the top holdings of this fund.
- Amplify Transformational Data Sharing ETF (BLOK)
BLOK is an actively managed ETF that invests almost 80% of its assets in blockchain-based businesses and technologies. Most of its holdings are U.S.-based and it follows an investment strategy that invests in both value and growth stocks. PayPal Holdings Inc., Voyager Digital Ltd., and Square Inc. are the largest holdings in the fund. It has total net assets worth $1,137,086,793 an annual yield of 1.41% and an expense ratio of 0.70%.
- Technology Select Sector SPDR Fund (XLK)
The Technology Select Sector SPDR Fund is an ETF with more than $40 billion in net assets under management with a year to date daily total return of 6.17%. The fund has a 52-week price range of $97-$143 and a net expense ratio of 0.12%. More than 3.7% of its AUM is invested in Mastercard Incorporated.
- ARK Next Generation Internet ETF (ARKW)
ARKW is another actively managed ETF that invests both in domestic as well as U.S. exchange-traded foreign securities of companies. The majority of these companies are engaged in AI, big data, e-commerce, cybersecurity, IoT, blockchain, P2P, blockchain and cloud computing. Its holdings consist mainly of large-cap companies with strong potentials, as evident by its largest holdings: Twitter Inc. (TWTR), Shopify Inc. (SHOP) and Tesla Inc. (TSLA).
- iShares Expanded Tech-Software Sector ETF (IGV)
IGV is an ETF that tracks the investment results of S&P North American Expanded Technology Software Index. Companies in its holdings. This includes companies based in the U.S. which focus on software, interactive home, and interactive media industries. Zoom Video Communications, Inc. (ZM), the California-based communications technology company is its biggest holding.
- Wedbush ETFMG Video Game Tech ETF (GAMR)
GAMR tracks the EEFund Video Game Tech Index which consists of companies involved in the gaming industry such as game developers, console and chip manufacturers, and game retailers. Wemade Co. Ltd. a Korea-based mobile and online game developer, Roblox Corp. a video game developer and NetDragon Websoft Holdings Ltd. a China-based video game developer are the biggest holdings in the fund.
- SPDR S&P Semiconductor ETF (XSD)
SPDR S&P Semiconductor ETF tracks the S&P Semiconductor Select Industry Index via a sampling strategy and invests at least 80% of total assets in the stocks on the index. It has close to $1 billion in AUM, a year to date daily total return of 4.22% and a net expense ratio of 0.42%. Synaptics Inc., SunPower Corp., ON Semiconductor Corp. and Silicon Laboratories Inc are the fund’s largest holdings.
- Vanguard Information Technology Index Fund ETF Shares (VGT)
VGT tracks the performance of MSCI US Investable Market/Information Technology 25/50 Index, consisting of small, large and mid-sizedmid sized U.S. based companies focused on the IT sector. Apple Inc., NVIDIA Corp., PayPal Holdings Inc., Cisco Systems Inc, Adobe Inc and Intel Corp are some of the holdings of the fund.
The acceleration of migration to the online world due to the Covid-19 pandemic has certainly benefited ETFs in the Tech sector. With an increased prevalence of online trading platforms, trading in ETFs has become easier than ever. All one has to do is sign up with a trusted broker and make sure they keep up to date with news of the sector they are concentrating on.