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Tech ETFs to Buy on Decade's Strongest PC Growth

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The ongoing coronavirus pandemic has led to the global digital shift, and has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. This is likely to have boosted personal computer (PC) sales in the third quarter.

In fact, PC sales witnessed the strongest growth in a decade during the third quarter buoyed by strong demand from consumers working and studying remotely. Overall, PC shipment grew 3.6% to 71.4 million with 90% growth coming from Chromebooks, according to Gartner. Lenovo, the largest PC maker by shipments in the quarter, was the largest beneficiary of the trend with shipments growing 8.3% year over year to 18.3 million. HP (HPQ - Free Report) , Dell (DELL - Free Report) , Apple (AAPL - Free Report) , and Acer rounded out the top five PC manufacturers.

Although desktop demand was weak, gaming PCs and notebooks with cellular modems remained strong. In particular, graphics cards based on Nvidia’s (NVDA - Free Report) new GeForce RTX 3080 and 3090 gaming GPUs enjoyed high demand while Sony (SNE - Free Report) and Microsoft (MSFT - Free Report) saw strong pre-orders for their next-generation consoles (read: Video Gaming Thrives in Pandemic: 3 Top ETFs to Gain).

Given the resurgence in COVID-19 infections and no immediate signs of a vaccine, the PC market is expected to remain strong for the rest of the year. As such, investors could ride out the surging PC market with these technology ETFs — iShares U.S. Technology ETF (IYW - Free Report) , iShares Expanded Tech Sector ETF (IGM - Free Report) and Invesco DWA Technology Momentum ETF (PTF - Free Report) . These have a Zacks Rank #1 (Strong Buy) or 2 (Buy), suggesting their continued outperformance.

Even though all three funds target the broad sector, IYW focuses on software and services. IGM provides investors exposure to hardware, software, Internet marketing, interactive media and related companies. Meanwhile, PTF targets companies with relative strength (momentum), software being the top industry (see: all the Technology ETFs here).

Apple and Microsoft are the top holdings in both iShares ETFs. Meanwhile, Five9 Inc (FIVN - Free Report) is the top firm in Invesco ETF, followed by Apple. Further, IYW is ultra-popular and comes with a low expense ratio of 0.43% compared to 0.46% for IGM and 0.60% for PTF.

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