We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The tech-heavy Nasdaq Composite recently witnessed its worst performance in April since 2008, losing 21.2%. The other two broad market indices also saw toughness as the Dow Jones Industrial Average and the S&P 500 indices witnessed their worst month since March 2020.
Many factors like the rising benchmark 10-year Treasury note yield, the Fed’s tightening of monetary policy, the Russia-Ukraine war crisis and resurging COVID-19 cases in China kept investors worried.
The dip in tech stocks has opened up great investing opportunities. JPMorgan Chase strategist Marko Kolanovic also commented that there are “great opportunities in high-beta, beaten-down segments that now include innovation, tech, biotech, emerging markets,” as mentioned in a Bloomberg article.
Investors willing to be part of the tech space can bet on some top-ranked technology ETFs like Vanguard Information Technology ETF (VGT - Free Report) , The Technology Select Sector SPDR Fund (XLK - Free Report) , iShares U.S. Technology ETF (IYW - Free Report) and First Trust NASDAQ-100-Technology Sector Index Fund (QTEC - Free Report) .
Notably, technology held an important position in the ongoing health crisis. Telemedicine and Digital Health received significant importance. Data management and storage have become integral aspects of healthcare today. Thus, with the technological advancements in the healthcare sector and the rising adoption of healthcare IT solutions as well as advantages of cloud usage healthcare, the cloud computing market is on a growth trajectory.
The pandemic-induced remote/hybrid working model has bumped up sales of PCs, laptops and other computer peripherals. Certain other ‘new normal’ trends have also emerged amid the health crisis, like growing inclination toward making digital payments, increasing video streaming and soaring video game sales.
The COVID-19 outbreak has been a blessing in disguise for the e-commerce industry as people are practicing social distancing and shopping online for all essentials, especially food items. The world is gradually moving toward digitization, increasing the dominance of technology in the financial sector.
The semiconductor space is attracting huge inflows in 2022 despite weakness in chipmaker stocks. A Bloomberg report highlights that chip ETFs have already witnessed around $6.8 billion of inflows until mid-April this year. The figure shows a staggering jump in inflows compared to investments of $5.2 billion and $2.1 billion in 2021 and 2020, respectively (per a Bloomberg report).
Technology ETFs to Keep Track of
The technology space can keep recovering in the second quarter of 2022, given its dominant role in maintaining social-distancing norms amid the pandemic and the growing investments in the space. Investors could consider the following ETFs:
Vanguard Information Technology ETF
Vanguard Information Technology ETF seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index. VGT has AUM of $46.96 billion. It charges investors 10 basis points (bps) in annual fees. Vanguard Information Technology ETF currently sports a Zacks ETF Rank #1 (Strong Buy), with a Medium-risk outlook (read: Cloud Drives Microsoft Fiscal Q3 Earnings: ETFs to Buy).
The Technology Select Sector SPDR Fund
The Technology Select Sector SPDR seeks to provide investment results that before expenses generally correspond with the price and yield performance of the Technology Select Sector Index. XLK has AUM of $44.41 billion. It charges investors 10 bps in annual fees. The Technology Select Sector SPDR presently flaunts a Zacks ETF Rank of 1, with a Medium-risk outlook (read: Follow Warren Buffett With These ETFs).
iShares U.S. Technology ETF
iShares U.S. Technology ETF seeks to provide investment results that before expenses generally correspond with the price and yield performance of the Russell 1000 Technology RIC 22.5/45 Capped Index. IYW has AUM of $7.53 billion. It charges investors 41 bps in annual fees, as stated in the prospectus. iShares U.S. Technology ETF currently sports a Zacks ETF Rank #1, with a Medium-risk outlook (read: Apple Beats on Earnings, Issues Weak Outlook: ETFs in Focus).
First Trust NASDAQ-100-Technology Sector Index Fund
First Trust NASDAQ-100-Technology Sector Index Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield of the NASDAQ-100 Technology Sector Index. QTEC has AUM of $2.09 billion. It charges investors 56 bps in annual fees. First Trust NASDAQ-100-Technology Sector Index Fund also flaunts a Zacks ETF Rank #1 at present, with a High-risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Grab These Top-Ranked Tech ETFs to Buy the Dip
The tech-heavy Nasdaq Composite recently witnessed its worst performance in April since 2008, losing 21.2%. The other two broad market indices also saw toughness as the Dow Jones Industrial Average and the S&P 500 indices witnessed their worst month since March 2020.
Many factors like the rising benchmark 10-year Treasury note yield, the Fed’s tightening of monetary policy, the Russia-Ukraine war crisis and resurging COVID-19 cases in China kept investors worried.
The dip in tech stocks has opened up great investing opportunities. JPMorgan Chase strategist Marko Kolanovic also commented that there are “great opportunities in high-beta, beaten-down segments that now include innovation, tech, biotech, emerging markets,” as mentioned in a Bloomberg article.
Investors willing to be part of the tech space can bet on some top-ranked technology ETFs like Vanguard Information Technology ETF (VGT - Free Report) , The Technology Select Sector SPDR Fund (XLK - Free Report) , iShares U.S. Technology ETF (IYW - Free Report) and First Trust NASDAQ-100-Technology Sector Index Fund (QTEC - Free Report) .
Notably, technology held an important position in the ongoing health crisis. Telemedicine and Digital Health received significant importance. Data management and storage have become integral aspects of healthcare today. Thus, with the technological advancements in the healthcare sector and the rising adoption of healthcare IT solutions as well as advantages of cloud usage healthcare, the cloud computing market is on a growth trajectory.
The pandemic-induced remote/hybrid working model has bumped up sales of PCs, laptops and other computer peripherals. Certain other ‘new normal’ trends have also emerged amid the health crisis, like growing inclination toward making digital payments, increasing video streaming and soaring video game sales.
The COVID-19 outbreak has been a blessing in disguise for the e-commerce industry as people are practicing social distancing and shopping online for all essentials, especially food items. The world is gradually moving toward digitization, increasing the dominance of technology in the financial sector.
The semiconductor space is attracting huge inflows in 2022 despite weakness in chipmaker stocks. A Bloomberg report highlights that chip ETFs have already witnessed around $6.8 billion of inflows until mid-April this year. The figure shows a staggering jump in inflows compared to investments of $5.2 billion and $2.1 billion in 2021 and 2020, respectively (per a Bloomberg report).
Technology ETFs to Keep Track of
The technology space can keep recovering in the second quarter of 2022, given its dominant role in maintaining social-distancing norms amid the pandemic and the growing investments in the space. Investors could consider the following ETFs:
Vanguard Information Technology ETF
Vanguard Information Technology ETF seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index. VGT has AUM of $46.96 billion. It charges investors 10 basis points (bps) in annual fees. Vanguard Information Technology ETF currently sports a Zacks ETF Rank #1 (Strong Buy), with a Medium-risk outlook (read: Cloud Drives Microsoft Fiscal Q3 Earnings: ETFs to Buy).
The Technology Select Sector SPDR Fund
The Technology Select Sector SPDR seeks to provide investment results that before expenses generally correspond with the price and yield performance of the Technology Select Sector Index. XLK has AUM of $44.41 billion. It charges investors 10 bps in annual fees. The Technology Select Sector SPDR presently flaunts a Zacks ETF Rank of 1, with a Medium-risk outlook (read: Follow Warren Buffett With These ETFs).
iShares U.S. Technology ETF
iShares U.S. Technology ETF seeks to provide investment results that before expenses generally correspond with the price and yield performance of the Russell 1000 Technology RIC 22.5/45 Capped Index. IYW has AUM of $7.53 billion. It charges investors 41 bps in annual fees, as stated in the prospectus. iShares U.S. Technology ETF currently sports a Zacks ETF Rank #1, with a Medium-risk outlook (read: Apple Beats on Earnings, Issues Weak Outlook: ETFs in Focus).
First Trust NASDAQ-100-Technology Sector Index Fund
First Trust NASDAQ-100-Technology Sector Index Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield of the NASDAQ-100 Technology Sector Index. QTEC has AUM of $2.09 billion. It charges investors 56 bps in annual fees. First Trust NASDAQ-100-Technology Sector Index Fund also flaunts a Zacks ETF Rank #1 at present, with a High-risk outlook.