How do tech ETFs fit into a diversified portfolio?

Tech ETFs can provide broad exposure to technology stocks or allow you to invest in a specific technology trend, such as artificial intelligence (AI) or cybersecurity. And it can do this without exposing you to excessive risk in any individual stock.

How do tech ETFs differ from individual tech stocks?

Tech ETFs spread your investment across an entire portfolio of technology stocks. The biggest difference is that your long-term investment performance will depend on the success of the overall technology sector or a specific tech industry, rather than the success or failure of any individual company.

The Invesco QQQ ETF is an exchange-traded fund that tracks the Nasdaq-100 benchmark index. Although it isn't solely a technology ETF, because of the tech-heavy nature of the Nasdaq, it offers a lot of exposure to the sector.

What is the Big 6 Tech ETF?

There is no single ETF that invests in the six largest companies, but there are several that focus on mega-cap stocks, including the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK).

Does Fidelity have a tech ETF?

Fidelity has several technology-focused ETFs. The broad tech ETF is the Fidelity MSCI Information Technology Index ETF (NASDAQ: FTEC). In addition, Fidelity has ETFs that specialize in cloud computing, disruptive automation, crypto and digital payments, metaverse technology, and more.

Do tech ETFs pay dividends?

If the underlying stocks held by an ETF pay dividends, they are typically passed along to shareholders at regular intervals. However, it's worth noting that many tech stocks don't pay dividends, and those that do tend to have below-average dividend yields.

Can I invest in tech ETFs for long-term growth?

Yes, tech ETFs have a history of producing excellent returns over long periods of time. For example, over the past 20 years, the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq-100, has produced a 1,730% total return.

7 Best Tech ETFs to Buy Now

Here's how to get tech exposure without the single-stock risk.

By Matthew Frankel, CFP – Updated Feb 4, 2026 at 7:29 PM EST | Fact-checked by Robin Hartill, CFP

Key Points

Tech ETFs allow diversified investment in tech sectors without the risks of individual stocks.
Top tech ETFs like Vanguard Information Technology offer low expense ratios for cost-effective investing.
Specialized tech ETFs, such as Ark Innovation, target high growth by actively managing innovative stocks.

Tech ETFs, or exchange-traded funds, are vehicles that allow you to invest in an entire basket of technology stocks in a single investment that trades just like a common stock. There have been some massive winners in the tech sector in recent years, but there has also been considerable turbulence.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

On the one hand, exciting new technologies like artificial intelligence (AI) have created many potential investment opportunities. On the other hand, stock market volatility makes many investors hesitant to pick individual tech stocks.

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A digital rendering of skyscrapers with technology symbols, like WiFi, PC, and Bluetooth, superimposed over it in a web of network connections. — Image source: Getty Images.

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Ticker Information Table
Name and ticker	Current price
Vanguard Information Technology ETF (NYSEMKT:VGT)	$715.68
Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK)	$136.95
VanEck ETF Trust - VanEck Semiconductor ETF (NASDAQ:SMH)	$391.36
iShares Trust - iShares Cybersecurity And Tech ETF (NYSEMKT:IHAK)	$45.47
Invesco QQQ Trust (NASDAQ:QQQ)	$588.00
Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT:RSPT)	$46.33
Ark ETF Trust - Ark Innovation ETF (NYSEMKT:ARKK)	$70.92

Data as of Mar 24, 2026. Showing 7 of 7 tickers.

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Asset

An asset is a resource used to hold or create economic value.

2. Technology Select Sector SPDR ETF

The Technology Select Sector SPDR ETF (XLK +1.35%) is offered by State Street (STT +0.86%). It is very close to the Vanguard fund, offering a similar asset size, a low 0.08% expense ratio, and a similar benchmark index. In fact, the fund's top holdings (and their respective weights) are almost identical to the Vanguard example.

Both ETFs give you broad exposure to the information technology sector. It's tough to say which is better than the other. Investors who want to invest in tech stocks will not go wrong with either.

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3. VanEck Semiconductor ETF

Now, we're getting into more specific ways to invest in tech stocks through ETFs. The VanEck Semiconductor ETF (SMH +1.72%) tracks an index of semiconductor manufacturers, commonly known as chipmakers. This can be an excellent way to invest in AI technology without having to buy individual stocks.

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Semiconductor

A semiconductor is a basic element or compound substance that conducts electricity in certain situations.

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Tech ETF FAQ

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Matt Frankel, CFP has positions in Amazon. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Apple, Applied Materials, CRISPR Therapeutics, Hewlett Packard Enterprise, Microsoft, Nvidia, Roku, Taiwan Semiconductor Manufacturing, Tesla, Texas Instruments, and Varonis Systems. The Motley Fool recommends Broadcom and Coinbase Global and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.