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5 Best Tech ETFs to Buy for Q2 2025
Tech is a disruptive and innovative industry that offers growth investors serious scope for investment.
Unlimited growth potential carries unlimited risk in turn. This page offers an overview of the best tech ETFs for investors with the requisite risk appetites.
What are the top tech ETFs to buy?
Copy link to sectionIn the table below, our analysts have selected five of the best tech ETFs that you can invest in today. Continue scrolling further down the page to learn more about our top ETFs picks each in turn.
| # | ETF symbol | ETF name | Learn more |
|---|---|---|---|
| 1 | VGT | Vanguard Information Technology Index Fund ETF | Learn more > |
| 2 | SMH | VanEck Semiconductor ETF | Learn more > |
| 3 | IYW | iShares US Technology ETF | Learn more > |
| 4 | XLK | Technology Select Sector SPDR Fund | Learn more > |
| 5 | SOXX | iShares Semiconductor ETF | Learn more > |
1. Vanguard Information Technology Index Fund ETF (NYSEARCA: VGT)
Copy link to section- Current price: $576.75
- AUM: $80.30 billion
- Annual expense ratio: 0.10%
- YTD performance: 19.33%
- Annual dividend yield: 0.63%
The Vanguard Information Technology Index Fund ETF is a staple for investors seeking comprehensive exposure to the U.S. tech sector. This fund tracks the MSCI US Investable Market Index/Information Technology 25/50, covering a wide array of technology companies across various market capitalizations.
VGT’s diversified holdings span the tech sector, from hardware giants to software innovators. Notably, the ETF includes stocks like Microsoft, Apple, and NVIDIA, which together constitute a significant portion of the portfolio. This concentration in top tech performers has driven impressive returns, with the ETF outpacing broader market indices year-to-date.
Despite its tech-heavy focus, VGT maintains a balance of growth and value stocks, providing stability alongside potential for high returns.
One key feature of VGT is its low expense ratio of just 0.10%, making it an attractive option for cost-conscious investors. Additionally, the fund’s consistent dividend yield, albeit modest, adds an income component to the growth-oriented portfolio.
2. VanEck Semiconductor ETF (NASDAQ: SMH)
Copy link to section- Current price: $258.82
- AUM: $23.09 billion
- Annual expense ratio: 0.35%
- YTD performance: 48.01%
- Annual dividend yield: 0.40%
The VanEck Semiconductor ETF is a standout performer among tech ETFs, offering investors targeted exposure to the semiconductor industry. This ETF tracks the MVIS US Listed Semiconductor 25 Index, focusing on the top 25 U.S.-listed semiconductor companies.
With holdings in industry giants like NVIDIA, Taiwan Semiconductor Manufacturing Co., and Broadcom, SMH capitalizes on the robust growth within the semiconductor sector.
One of the key differentiators of SMH is its heavy allocation towards NVIDIA, which constitutes over 20% of its portfolio. This focus has significantly boosted the ETF’s performance, making it one of the best-performing tech ETFs this year.
However, SMH is not solely dependent on NVIDIA; it also includes other influential semiconductor firms such as Advanced Micro Devices and ASML Holding, ensuring diversified exposure across the semiconductor value chain.
The ETF’s solid performance, driven by the increasing demand for semiconductors in AI and data centers, positions it as a compelling choice for investors seeking to capitalize on the ongoing tech revolution.
3. iShares US Technology ETF (NYSEARCA: IYW)
Copy link to section- Current price: $152.02
- AUM: $20.00 billion
- Annual expense ratio: 0.40%
- YTD performance: 23.85%
- Annual dividend yield: 0.21%
iShares US Technology ETF provides targeted access to the U.S. technology sector, encompassing both growth and value stocks across various market capitalizations. Unlike broader tech ETFs, IYW follows the Russell 1000 Technology RIC 22.5/45 Capped Index, offering a more focused approach to the tech industry.
This fund’s strategy is ideal for investors who want exposure to the leading tech companies without the need to sift through individual stocks.
One distinguishing feature of IYW is its significant concentration in the top three holdings—Microsoft, Apple, and NVIDIA—which together account for nearly 50% of the portfolio. This concentration can lead to higher volatility, but it has also driven strong performance, with the ETF boasting a YTD return of 23.85%.
While some investors might view this as a concentration risk, others may appreciate the strong influence of these tech giants on the ETF’s overall performance.
IYW’s sector composition is another notable aspect, with substantial allocations in software and semiconductors, making up 36% and 35% of the fund, respectively. This focus aligns with the current tech landscape, where software and semiconductor companies play crucial roles in technological advancements.
4. Technology Select Sector SPDR Fund (NYSEARCA: XLK)
Copy link to section- Current price: $227.94
- AUM: $70.21 billion
- Annual expense ratio: 0.09%
- YTD performance: 18.42%
- Annual dividend yield: 0.67%
Technology Select Sector SPDR Fund offers a unique blend of growth and stability by targeting the performance of the Technology Select Sector Index. Managed by State Street Global Advisors, it provides diversified exposure to the U.S. tech sector. Unlike some of its peers, XLK employs a full replication strategy, ensuring it closely mirrors the performance of its benchmark index.
A key feature of XLK is its low expense ratio of 0.09%, one of the lowest among tech ETFs, making it an attractive choice for cost-conscious investors. The fund’s portfolio is heavily weighted towards industry giants like Microsoft and NVIDIA, which together account for a significant portion of the holdings.
This concentration in leading tech firms has contributed to its strong performance, yet it maintains a degree of diversification with investments across various sub-sectors within technology.
The ETF’s long track record, dating back to its inception in 1998, highlights its stability and resilience through various market cycles. Investors seeking a reliable tech ETF with a balanced mix of top-tier companies and a proven history of returns will find XLK to be a robust addition to their portfolio.
5. iShares Semiconductor ETF (NASDAQ: SOXX)
Copy link to section- Current price: $246.62
- AUM: $14.96 billion
- Annual expense ratio: 0.35%
- YTD performance: 28.43%
- Annual dividend yield: 0.59%
iShares Semiconductor ETF is a prime choice for investors aiming to capitalize on the explosive growth within the semiconductor industry. Managed by BlackRock, this ETF tracks the performance of the NYSE Semiconductor Index, providing exposure to a range of companies involved in the design, distribution, manufacturing, and sale of semiconductors.
SOXX has outperformed the S&P 500 significantly over the past five years, generating total returns of 292.01% compared to the S&P 500’s 101.54%. This exceptional performance is driven by its top holdings in industry leaders like Broadcom, NVIDIA, and Advanced Micro Devices, which have benefited from the surging demand for semiconductors in AI, data centers, and other tech applications.
With a focused portfolio of 35 holdings, SOXX offers concentrated exposure to key players in the semiconductor market. The ETF’s top ten holdings constitute 58.13% of its assets, ensuring investors have substantial stakes in market leaders.
Where to buy the best tech ETFs
Copy link to sectionRegistering with an online broker is the first step to investing in an ETF. They are like individual stocks, you can sell or buy ETFs as you wish. The table below features our pick of the best brokers that offer access to tech ETFs.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Plus500
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.
What is a tech ETF?
Copy link to sectionIt’s an exchange traded fund that holds shares in companies within the tech industry. Companies involved in this industry focus on the production of electronics, innovation of software computers, or other services relating to information technology. The sector is pivotal to the overall growth of the global economy.
Investors flock to tech stocks as they comprise some of the largest companies in the market. Companies like Amazon, IBM, Google, Microsoft, and Meta Platforms (formerly Facebook) drive the economy and their stocks are increasingly valuable to growth investors. Tech exchange traded funds are thus an ideal first step through the door into investing in the tech sector.
Are tech ETFs a good investment?
Copy link to sectionTech companies are innovative, disruptive, and move the market. As a result, the tech industry is the most attractive source of investment in any economy. Untapped growth potential indicates high risk investments that can entail high rewards if you do your due diligence.
When tech companies introduce new lines of business, they simultaneously create sensation that drives growth in the market. Investors are wise to seek tech ETFs with stocks of companies that heavily invest into research and development.
The element of risk is withstanding. Any new investor must be prepared for the risk of investing in companies that undertake projects with a speculative view of future growth. You should best place your investment by staying on top of sector news using the links below.
Methodology: How we choose the best tech ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.
