S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Former Bank of Beijing chairman under investigation, part of China's crackdown on corruption
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Former Bank of Beijing chairman under investigation, part of China's crackdown on corruption
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Former Bank of Beijing chairman under investigation, part of China's crackdown on corruption
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
South Korean doctors hold massive anti-government rally over medical school recruitment plan
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Former Bank of Beijing chairman under investigation, part of China's crackdown on corruption
Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
What to watch for as China's major political meeting of the year gets underway
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet

3 Tech-Focused ETFs: Unleashing The Power Of Innovation

ETF - Exchange Traded Fund tech stocks As the technology sector continues to drive the market's impressive surge this year, it becomes crucial to familiarize ourselves with the leading and most popular tech-focused exchange-traded funds (ETFs). Understanding their highest-weighted players and unique offerings can provide valuable insights into the sector's dynamics, given its current leadership in the market.

Key Points

  • The QQQ is a top-performing ETF with significant exposure to the technology sector, offering diversification and growth potential.
  • XLK is a passive ETF mirroring the Technology Select Sector of the S&P 500 Index, providing exposure to various tech industries and impressive year-to-date performance.
  • ARKK ETF actively invests in innovative technologies across sectors, achieving a remarkable YTD return of 58%.
  • 5 stocks we like better than ARK Innovation ETF

As tech's dominance remains evident, exploring these ETFs becomes essential for investors seeking to capitalize on the sector's potential future growth and impact on overall market performance.

You might be wondering, why should I invest in an ETF when I can just focus on an individual stock? Investing in ETFs offers instant diversification, reducing risk and providing cost-efficiency compared to single stocks. ETFs also offer liquidity and accessibility to a wide range of assets, making them suitable for seasoned and novice investors. So with that being said, let's take a closer look at three popular tech-focused ETFs.

Invesco QQQ NASDAQ: QQQ

The Invesco QQQ is a leading ETF and arguably the most popular technology-focused ETF. QQQ is an excellent choice for investors seeking diversification, exposure to Nasdaq-100 Index, and growth potential in top technology companies. 

The fund offers low fees, tax advantages, and the convenience of passive investing with a diverse range of assets. QQQ has a dividend yield of 0.56% and a net expense ratio of 0.20%.

The ETF is up 44% year-to-date and has dramatically outperformed the benchmark S&P 500 by over 20%. The ETF has over 51% exposure to the technology sector, with 18.1% exposure to the semiconductors industry and 17% to the software industry. Geographically, the ETF focuses predominantly on U.S. companies, with a 99.2% exposure to the U.S.

QQQ Top 5 Holdings

QQQ Top 5 Holdings

Technology Select Sector SPDR Fund NYSE: XLK

The XLK ETF aims to match the performance of the Technology Select Sector of the S&P 500 Index. The fund passively invests in stocks related to IT consulting, semiconductor equipment, computers, telecommunications, and wireless services.


The fund currently has $51.54 billion in assets under management, a dividend yield of 0.72%, slightly higher than the QQQs, and a net expense ratio of just 0.10%.

Like the QQQs, XLK mainly focuses on U.S. companies, with a 96.3% U.S. geographic exposure. The ETF has a 96.9% exposure to the technology sector, with 37.5% software industry exposure, 26.9% communications equipment industry exposure, and 25.3% in semiconductors industry exposure. 

Year-to-date, the ETF is up 43%, and with its vast exposure to the technology sector, it's no surprise that it has vastly outperformed the S&P 500 index.

XLK Top 5 Holdings

XLK Top 5 Holdings

ARK Innovation ETF NYSE: ARKK

ARKK is an actively managed ETF that seeks to provide investors with exposure to disruptive and innovative technologies that have the potential to shape the future. The ETF invests in companies across various sectors, such as healthcare, robotics, the Internet of Things (IoT), and artificial intelligence.

The fund has $9.08 billion in assets under management, a considerably higher expense ratio of 0.75%, and no dividend yield.

Unlike the XLK or QQQ, ARKK has spread its sector exposure across various industries. The ETF has a 23.9% sector exposure to technology, 19.3% to consumer discretionary, and 16.2% to health care. Its top four industry exposures are software at 12.9%, automobiles at 10.3%, IT services at 10.3%, and consumer products at 8.9%.

Year-to-date, the ETF boasts a staggering return of 58%, up almost 38% over the last three months. 

ARKK Top 5 Holdings

ARKK Top 5 Holdings
 

→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) (Ad)

Should you invest $1,000 in ARK Innovation ETF right now?

Before you consider ARK Innovation ETF, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ARK Innovation ETF wasn't on the list.

While ARK Innovation ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Invesco QQQ (QQQ)N/A$445.61+1.5%0.52%N/AN/AN/A
Technology Select Sector SPDR Fund (XLK)N/A$210.76+1.8%0.61%20.04HoldN/A
ARK Innovation ETF (ARKK)N/A$51.14-0.2%N/AN/AN/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Ryan Hasson

About Ryan Hasson

  • Ry.has7@gmail.com

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Experience

Ryan Hasson has been a contributing writer for MarketBeat since 2023.

Areas of Expertise

Equity research and analysis, technical analysis and price action, market sentiment and underlying themes, risk management and trading psychology

Education

Bachelor of Commerce in Financial Management

Past Experience

Equities trader, Kershner Trading Group, business analysis consultant, SMB Capital

Zoom International: Business Analysis Consultant.


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