The technology sector includes companies focused on the research, development, and sale of a broad range of hardware and software used by consumers and businesses. It includes giants such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN), as well as many fast-growing younger companies. The sector has been a major driver of overall gains in the stock market.
- The tech sector slightly underperformed the broader market over the past year.
- The ETFs with the best 1-year trailing total return are BLOK, PSI, and PRNT.
- The top holdings of these ETFs are class A shares of MicroStrategy Inc., Advanced Micro Devices Inc., and ExOne Co., respectively.
There are 70 distinct technology ETFs that trade in the U.S., excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). The technology sector, as measured by the S&P 500 Information Technology Sector Index, has slightly underperformed the broader market with a total return of 30.7% over the past 12 months compared to the S&P 500's total return of 31.1%, as of Aug. 30, 2021. The best-performing technology ETF, based on performance over the past year, is the Amplify Transformational Data Sharing ETF (BLOK). We examine the top 3 best tech ETFs below. All numbers below are as of Aug. 31, 2021.
- Performance over 1-Year: 98.4%
- Expense Ratio: 0.71%
- Annual Dividend Yield: 1.33%
- 3-Month Average Daily Volume: 353,368
- Assets Under Management: $1.2 billion
- Inception Date: Jan. 17, 2018
- Issuer: Amplify Investments
BLOK is an actively managed ETF that invests at least 80% of its assets in stocks of companies that are actively engaged in the development and utilization of blockchain technologies. Blockchain technology is a type of distributed ledger technology underpinning many cryptocurrencies. The vast majority of the fund's holdings are based in North America and over half operate within the software and services sector of the economy. It follows a blended strategy, investing in a mix of both growth and value stocks across the market cap spectrum. The fund's top three holdings include class A shares of MicroStrategy Inc. (MSTR), a provider of enterprise software platforms; Hut 8 Mining Corp. (HUT:TSE), a Canada-based bitcoin mining and blockchain infrastructure company; and Marathon Digital Holdings Inc. (MARA), a digital asset company which mines cryptocurrencies worldwide.
- 1-Year Trailing Total Returns: 62.4%
- Expense Ratio: 0.57%
- Annual Dividend Yield: 0.14%
- 3-Month Average Daily Volume: 37,302
- Assets Under Management: $773.2 million
- Inception Date: June 23, 2005
- Issuing Company: Invesco
PSI is a multi-cap fund that targets growth semiconductor stocks. The fund tracks the 30-stock Dynamic Semiconductors Intellidex Index. The multi-cap ETF normally invests 90% of its total assets in stocks in the index. PSI focuses entirely on U.S. stocks. The ETF's top holdings are Advanced Micro Devices Inc. (AMD), a multinational semiconductor manufacturer; Qualcomm Inc. (QCOM), a wireless services, semiconductor, and software company; and Broadcom Inc. (AVGO), a maker of semiconductor and infrastructure software products.
- Performance over 1-Year: 59.0%
- Expense Ratio: 0.66%
- Annual Dividend Yield: N/A
- 3-Month Average Daily Volume: 91,044
- Assets Under Management: $520.0 million
- Inception Date: July 19, 2016
- Issuer: ARK
PRNT follows the Total 3D-Printing Index, which targets companies in the burgeoning 3D printing industry in the U.S., non-U.S. developed markets, and Taiwan. Companies in the benchmark are involved in 3D printing hardware, computer aided design and 3D printing simulation software, 3D printing centers, scanning and measurement, and 3D printing materials. The top holdings of this fund include ExOne Co. (XONE), a provider of industrial 3D printing systems and services; 3D Systems Corp. (DDD), a maker of 3D printers, 3D printing materials, and 3D scanners; and SLM Solutions Group AG (AM3D:ETR), a German maker of 3D metal printers.
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