Best tech ETFs to buy in 2022

Tech is the biggest growth sector in the market and attracts major investor interest as a consequence. This page offers a selection of the best tech ETFs on the market today.
By: Srijani Chatterjee
Srijani Chatterjee
Srijani is the quintessential Third Culture Kid having grown up in India, Singapore, Malaysia, The Netherlands, Scotland, and England.… read more.
Updated: Jan 31, 2022

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?

In 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 each in turn.

#ETF symbolETF name
1QQQInvesco QQQ ETF
2VGTVanguard Information Technology ETF
3FDNFirst Trust Dow Jones Internet Index ETF
4IBUYAmplify Online Retail ETF
5IXNiShares Global Tech ETF
Selected by our team of analysts 18 January 2022

1. Invesco QQQ ETF (NASDAQGM: QQQ)

QQQ is a fund that seeks to align with the performance and yield of the NASDAQ-100 Index. The fund holds 100 of the largest and technologically innovative companies according to market capitalization. It currently ranks in the top 1% of large cap-growth funds on the market.

The fund’s top 10 holdings are tech giants: Apple, Microsoft, Amazon, Tesla, Alphabet, Google, Meta (formerly Facebook), Nvidia, Paypal, and Adobe. About 53% of the fund’s assets are allocated to its top 10 holdings, and this means that the performance of these companies is pivotal to the fund’s performance. 

It should be reassuring to a new investor with a lower risk appetite that QQQ hedges its risk against the performance of the biggest tech companies on the market. Investing in blue-chip companies is a stable first foothold in the tech industry. Investors interested in the fund should do their own due diligence to best place their investment.

2. Vanguard Information Technology ETF (NYSEARCA: VGT)

VGT seeks to track and replicate the performance of a benchmark index that measures the return on investment of stocks in the information technology sector. It is a passively managed fund that is suited to long term investors. The fund currently holds stocks in 362 companies in the tech sector.

The fund’s top 10 holdings are allocated approximately 60% of its total assets. If you are interested in investing in VGT, you will be reassured to learn that the top 10 holdings comprise: Apple, Microsoft, Nvidia, Visa, Mastercard, Broadcom, Adobe, Cisco, Accenture, and Salesforce. All established companies that are market leaders in the industry.

Long-term investors can passively invest in VGT with the knowledge that they are investing in the creme de la creme companies within the industry. Consistent growth of market giants is at the crux of overall investor interest in the tech sector. Therefore, VGT is a relatively stable ETF to start your journey in this disruptive industry. 

3. First Trust Dow Jones Internet Index ETF (NYSEARCA: FDN)

FDN is the only fund on the market that is based on the Dow Jones Internet Composite Index. The fund has 42 holdings that constitute the most actively traded stocks of US companies in the internet industry. Due to its low number of holdings, the ETF carries more risk and is suited to investors with larger risk appetites.

The fund applies a strict criteria that must be met by companies it includes in its holdings: they must generate the majority of their sales/ revenue from the internet, they must have been trading on the market for at least 3 months, and they must have had at least 3 months worth of an average float-adjusted market cap of $100 million. 

This strict criteria hedges specific-holding risks resulting from a smaller number of total holdings. Investors appreciate that the top 10 holdings are allocated approximately 54% of the fund’s total assets and these holdings are notable market players: Amazon, Facebook (formerly Meta), Cisco, Alphabet (Class A and C), Salesforce, Netflix, Paypal, Snowflake, and Adobe. 

4. Amplify Online Retail ETF (NYSEARCA: IBUY)

IBUY is a fund that corresponds with the performance and yield of the EQM Online Retail Index. Its 79 holdings are stocks of publicly traded companies with significant revenue from online trading business. It is the age of e-commerce and tech investors are largely attracted to this upcoming space.

The fund allocates approximately 21% of its net assets to its top 10 holdings. These are: Expedia, Booking.Com, Amazon, Liquidity SVCS, Airbnb, Groupon, Uber, Tripadviser, Copart, Solo Brands. Since these are some of the top names in the ecommerce market, IBUY is a great stepping stone for new investors to the space.

The fund aims to result in a portfolio that enhances potential for capital appreciation. This strategy suits long-term investors seeking a passively managed fund that prioritises profit maximisation in the long run.

5. iShares Global Tech ETF (NYSEARCA: IXN)

IXN is a fund that seeks to track the results of an index comprising global equities in the tech industry. The fund has 132 holdings that are global companies focused on information technology, electronics, and/or computer hardware and software. 

Socially conscious investors are attracted to the fund’s high ESG rating. IXN is wholly dedicated to its ESG initiatives. This is a major point of appeal for investors interested in the fund as IXN’s performance is likely to remain resilient against ESG-related disruptions. 

The fund allocates approximately 58% of its assets across its top 10 holdings. Notable holdings in the top 10 include Apple, Microsoft, Nvidia, Visa, Samsung, and Adobe – all reputed blue-chip companies that are ideal for long-term investors seeking a relatively stable investment.

Where to buy the best tech ETFs

Registering with an online broker is the first step to investing in an ETF. ETFs are like individual stocks, you can buy or sell them as you wish. The table below features our pick of the best brokers that offer access to tech ETFs.

1
Min. Deposit
$10
Promotion
User Score
10
Trade/invest in stocks with just $10
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro users can connect with, learn from, and copy or get copied by other users. Buying stocks on eToro is free and you can invest with as little as $50.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$0
Promotion
User Score
9.3
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Description:
Firstrade is a leading online brokerage firm offering a full line of investment products and tools designed to help investors like you take control of your financial future. Since its founding in 1985, Firstrade has been committed to providing high value and quality services to help you reach your financial goals.
Payment Methods
Full regulations list:

What is a tech ETF?

It’s an exchange traded fund that holds shares in companies within the tech industry. Companies 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 (formerly Facebook) drive the economy and their stocks are increasingly valuable to growth investors. Tech ETFs are thus an ideal first step through the door into investing in the sector.

Are tech ETFs a good investment?

Tech 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.

Latest Tech news

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SecureKloud Technologies, an IT and cloud service firm that counts AWS and Google among its top partners, has launched four next-generation platforms to help drive digital transformation. The firm, which is based in the San Francisco Bay area and has more than 14 years of experience in the cloud services…
ManTech International Corporation (NASDAQ: MANT), a top-in-class provider of innovative solutions and technologies for national security mission-critical programs, had its shares rise by 15% after it announced it had executed a definitive sale agreement with Carlyle (NASDAQ: CG), whereby it would be acquired by the global investment company in an all-cash…
Data Storage Corporation (NASDAQ: DTST) is up 50% after the diverse business continuity solutions provider for cloud infrastructure, disaster recovery analytics solutions, and cyber-security announced its Q12022 financial results and offered a business update. Data storage grew revenue by 236% YoY CEO Chuck Piluso said: I am pleased to…
Wix.com Ltd. (NASDAQ:WIX) lost 8% on Monday after Q1 2022 loss widened to $227.3 million. The loss is wider compared to $62.1 million in the prior year. The company also continues to face headwinds from the Ukrainian war. The uncertainty clouds outlook for a long-term recovery…
Netflix Inc (NASDAQ: NFLX) has been a nightmare for shareholders this year, but a Wedbush Securities analyst is convinced the stock down 70% year-to-date is now ripe for a significant recovery.   Netflix Inc could be a $280 stock On Monday, Michael Pachter dubbed Netflix an…

Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

https://www.invesco.com/qqq-etf/en/home.html

https://investor.vanguard.com/etf/profile/VGT

https://www.ftportfolios.com/retail/etf/ETFholdings.aspx?Ticker=FDN

https://amplifyetfs.com/ibuy/?campaignid=15121754350&adgroupid=129173517997&adid=558692965596&gclid=Cj0KCQiArt6PBhCoARIsAMF5wagfi6fgSRMq9qLRwQ8C0WvCiWTV4bIy3Yuv21io0XZUmUADLvBVlZAaAjFlEALw_wcB

https://www.ishares.com/us/products/239750/ishares-global-tech-etf

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Srijani Chatterjee
Financial Writer
Srijani is the quintessential Third Culture Kid having grown up in India, Singapore, Malaysia, The Netherlands, Scotland, and England. She still loves to travel and speaks… read more.