This post is all about technology ETFs. Generally speaking, technology stocks have been popular amongst investors because they present both the ability to reinvent old business models and create entirely new ones, which comes with explosive growth potential. At the time of writing, 7 of the top 10 companies by market cap are technology companies.
The technology sector is vast, covering the full value chain of computing – semiconductors, software, hardware, and services, both at the consumer and enterprise level. If a company's core business revolves around any of these categories, it can be considered a technology company. For this reason, the major ETFs contain constituents ranging from Apple to Mastercard to NVIDIA to Salesforce.
Also included in this universe are ETFs that represent more niche pockets of the broader index. So while they are correlated, they have different enough characteristics that you can generally tweak your exposure according to your views. For example, weighting your portfolio more heavily with SKYY may reduce your exposure to tariff-related risk as the constituent companies aren’t trading in physical products. There is also an ETF that follows the Chinese technology sector.
Short exposure is available through TECS and SOXS, which track to 300% of the daily inverse of the Technology Select Sector Index and the PHLX Semiconductor Sector Index, respectively.
Alex Otsu
US Technology ETFs: VGT, XLK, TECL/TECS (long/short), FTEC, QQQ
Semiconductors: SOXX, SOXL/SOXS (long/short), SMH:
Alex Otsu
China: KWEB
Subsector ETFs:
Tim Bohmann
Great info! This gives me some new ideas for sure.
Tim Bohmann
5yr SPY vs TechnologyETFUniverse components
Tim Bohmann
To clarify, that's 5 yr return vs SPY, not price.
Alex Otsu
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