Top Technology ETFs for 2024

Given that the technology space is arguably the single largest driver of innovation and economic growth, investors have been putting more and more of their focus on ETFs with a technology orientation. Such ETFs would then offer an easy, diverse way for an investor can get in on some of the activity within a fast-evolving tech industry. Taking investment and spreading it into many companies is rationalized with the technology ETFs, which help in reducing the risk and at the same time, capturing the gain of the sector.

Here is an in-depth guide to discussing some of the best technology ETFs that you can keep on your radar in 2024, with salient features, performance metrics, and functional benefits.

1. Vanguard Information Technology ETF (VGT)

Overview:

The Vanguard Information Technology ETF is one of the top technology ETFs to invest in. By class, one of the largest and most popular technology ETFs available. This ETF provides broad-based exposure to the US technology sector and includes almost all types of tech companies, from well-established market giants to innovators.

Key Holdings:

VGT's portfolio is dominated by big tech leaders such as Apple, Microsoft, and NVIDIA. Each of these companies takes a huge chunk of the fund, making it very tilted toward large-cap tech companies.

Performance:

As of the most recent data, VGT is priced at US$580.01, with a 52-week range of US$519.30 to US$580.01. The fund has had strong returns since most of its components have fared well.

Expense Ratio:

VGT provides a cost-effective way for investors to gain broad exposure to the US technology sector; the ETF has an expense ratio of just 0.10%.

2. Technology Select Sector SPDR Fund (XLK)

Overview:

The Technology Select Sector SPDR Fund is another of the top technology ETFs. The company is laser-focused on the technology sector of the S&P 500. It gives exposure to some of the strongest and most pioneering technology companies in the American marketplace.

Key Holdings:

The best four holdings of XLK are all big tech: Apple, Microsoft, and NVIDIA reflect a strong position by this fund among the sector's leaders.

Performance:

Currently, XLK is trading at the price of US$223.96, having 52 weeks range of US$205.38 to US$223.96. Fund's performance moves almost the same as its underlying index; that's why it's a credible option for those who want to cash the growth concepts of the highest tech behemoths.