U.S. tech stocks have been hitting rough weather this year as surging inflation has been weighing on their lofty valuations caused by massive policy easing since the COVID-19 outbreak. Though tech stocks tried to recoup losses several times in the recent sell-offs, investors remain cautious about betting big on growth stocks. Hence, shares of high-growth technology companies remain in a tight spot.

Now the question is, should investors buy the dip in blue-chip tech stocks and ETFs? There is a reason that may support the space despite the rising rate fears.

New Covid Variants are ‘Pretty Troublesome’   

Dr. Fauci, the director of the National Institute of Allergy and Infectious Diseases in the United States, recently warned about a pair of “pretty troublesome” Covid variants, as quoted on CNBC. The two descendants of omicron’s BA.5 subvariant, called BQ.1 and BQ.1.1, both have dangerous “qualities or characteristics that could evade some of the interventions we have,” Fauci told CBS News on Oct 14.

 The above-mentioned fact confirms that new Omicron variants is not to be ignored. Even if it proves be less fatal, the chances of higher infections are likely and the countries’ healthcare system may collapse again, resulting in lockdowns. Such possibilities will likely rule stay-at-home-friendly sector technology. The central banks will not likely be of much support anymore, while massive fiscal support is also not likely now.

“New normal” trends like work-and-learn-from-home and online shopping, increasing digital payments and growing video streaming are sure to stay here for long. The growing adoption of cloud computing and the ongoing infusion of AI, machine learning and IoT are the other winning areas.

So, don’t steer clear of the tech sector altogether. Rather, bet on the ones that boast strong fundamentals and survive volatility. Against this backdrop, we highlight a few tech ETFs that could be bought right now.

Below we highlight a few tech ETFs that have a strong Zacks Rank and have lost the least in the past one month (as of Oct 19, 2022).

ETFs in Focus

iShares North American TechMultimedia Networking ETF – Zacks Rank #1 (Strong Buy); Up 0.3% Past Month

The underlying S&P North American Technology-Multimedia Networking Index measures the performance of U.S. traded stocks of communication equipment companies in the United States and Canada.

Invesco Dynamic Software ETF – Zacks Rank #1; Down 2.1% Past Month

The underlying Dynamic Software Intellidex Index is comprised of stocks of software companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.

Invesco S&P SmallCap Information Technology ETF (PSCT Quick QuotePSCT - Free Report) – Zacks Rank #1; Down 3.4% Past Month

The underlying S&P SmallCap 600 Capped Information Technology Index measures the overall performance of common stocks of US information technology companies.

Invesco Dynamic Networking ETF – Zacks Rank #1; Down 3.5% Past Month

The underlying Dynamic Networking Intellidex Index is comprised of stocks of networking companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.

First Trust Dow Jones Internet ETF (FDN Quick QuoteFDN - Free Report) – Zacks Rank #2 (Buy); Down 5.4% Past Month

The underlying Dow Jones Internet Composite Index includes only companies whose primary focus is Internet-related.