Tech ETFs to Buy iShares North American Tech Software ETF IGV

techmanga June 27, 2021 0 Comments



Tech ETFs to Buy: Select Sector SPDR Technology ETF (XLK)


The Technology Select Sector SPDR Fund (NYSEARCA:XLK) is a popular technologyETF that follows the Technology Select Sector Index and has $17 billion inAUM. This fund trades in heavy volume of more than 9.7 million shares andcharges 14 bps in fees per year.In total, the fund holds about 72 securities in its basket with MSFT takingthe second spot at 10.7% of the assets. It has a Zacks ETF Rank of 2 (see: allthe Technology ETFs here).

Tech ETFs to Buy: Vanguard Information Technology ETF (VGT)


The Vanguard Information Technology ETF (NYSEARCA:VGT) fund manages about $14billion in its asset base and provides exposure to 364 technology stocks bytracking the MSCI US Investable Market Information Technology 25/50 Index.Here, takes the third spot with a 9.4% share.The ETF has 0.10% in expense ratio while volume is solid at nearly 483,000shares. It has a Zacks ETF Rank of 2.

Tech ETFs to Buy: MSCI Information Technology Index ETF (FTEC)


The Fidelity MSCI Information Technology Index ETF (NYSEARCA:FTEC) fund ishome to 363 technology stocks with AUM of $1 billion. It follows the MSCI USAIMI Information Technology Index. MSFT is the second firm with 9.5%allocation.The ETF has 0.08% in expense ratio while volume is good at 225,000 shares aday. It has a Zacks ETF Rank of 2.

Tech ETFs to Buy: iShares North American Tech ETF (IGM)


The iShares S&P NA Tech. Sec. Idx. Fd. (ETF) (NYSEARCA:IGM) tracks the S&PNorth American Technology Sector Index, giving investors exposure to 285electronics, computer software and hardware, and informational technologycompanies. Microsoft occupies the top position in the basket with 8.6% share.The fund has AUM of $1.2 billion and charges 48 bps in annual fees. It tradesin light volume of nearly 26,000 shares in hand a day and has a Zacks ETF Rankof 2.

Tech ETFs to Buy: iShares North American Tech-Software ETF (IGV)


The iShares S&P NA Tec.-SW. Idx. Fund (ETF) (NYSEARCA:IGV) provides exposureto the software segment of the broader U.S. technology space by tracking theS&P North American Technology-Software Index. The fund holds a basket of 57securities with Microsoft occupying the third spot at 8.6% of total assets. Itis quite popular with AUM of $1.1 billion while volume is good as it exchangesnearly 163,000 shares a day.The product charges 48 bps in annual fees and has a Zacks ETF Rank of 1 (read:3 Niche ETFs That Have Surged to 1 Rank This Summer).

Tech ETFs to Buy: iShares Edge MSCI Multifactor Technology ETF (TCHF)


The iShares Edge MSCI Multifactor Technology ETF (NYSEARCA:TCHF) has attracted$3.6 million in its asset base since its debut a year ago and trades in ameager volume of less than 1000 shares. It targets companies that have thepotential to outperform the broad U.S. technology sector and tracks the MSCIUSA Information Technology Diversified Multiple-Factor Capped Index.Holding 43 stocks in its basket, Microsoft is the second firm accounting for8.4% of the portfolio. TCHF charges 35 bps in fees per year and has a ZacksETF Rank of 2.

1. Trends in information technology will continue to tease both clients


and investors, bringing the global IT industry spending to $5 trillion in2019.(Source: CompTIA)Here is one that can barely count as a surprise. Emerging technologies paint abright future, but they are still too expensive to develop and introduce formass use. More investments in the sector should bring us one step closer tothat goal, and that’s why 56% of big enterprises expect their budget to growin the next year.

6. Speaking of top dogs and their gadgets, 90% of Fortune 500 companies


have already moved their systems to the Microsoft Cloud.(Source: Fortune)This process has established Microsoft as one of the cloud’s top players,something that seemed ludicrous just a few years back. An increasing number ofcompanies are attempting to embrace the recent information technology trendsin their early stages, and they often pivot from their traditional offerings.

13. Tech employment in the US plays a significant role in the country’s


economic growth. The IT industry was projected to be ensuring jobs for over11.6 million people by the end of 2019.(Source: CompTIA)The CompTIA research outlines the impact of the technology sector for the USeconomy. The numbers are even more impressive, considering self-employedworkers were not a part of the survey. In the course of the last eight years,the pool of global technical talent expanded with more than 387,000 softwaredevelopers and 190,000 IT support specialists.

18. Information technology trends will inevitably rely on the security


tech market. Investments in security reached $75.5 billion in 2016, $92.1billion in 2018, and are expected to hit $133.7 in 2022.(Source: Deloitte)Digital evolution comes with a lot of perks, but we have also to consider thehidden dangers. Cyber attacks are one of the most pressing concerns for techbusinesses and their clients alike. Tackling this growth inhibitor willinclude advanced solutions and heavy measures. On the bright side, companieslook ready to pay for quality.

19. Cybersecurity strongly affects all trends in information technology.


In 2018, over 18% of companies had halted AI initiatives due to online safetyrisks, and 22% decided not to start any new projects at all.(Source: Deloitte)The risks are real. Cybersecurity statistics reveal some alarming trends andbusinesses have every right to be concerned. The fear of not meeting clientexpectations hinders an increasing number of tech companies from expressingtheir true potential. This creates an opportunity for large cloud providersand security vendors to step in and “lighten the load,” introducing newtechnologies for advanced online safety.

20. Technology is booming, but not all investors are happy. Facebook


became Investor Enemy 1 in 2018 after the Cambridge Analytica scandalresulted in a massive 19% share drop in a single day.(Source: Profit Confidential)Just because the industry is gradually increasing in value, doesn’tnecessarily mean everybody is making a profit out of it. On the contrary, eventhe Big Five in the tech business are not 100% fail-safe. Facebook investorsfelt that particularly hard in March 2018. As the Cambridge Analytica databreach scandal erupted, their stocks plummeted in a matter of hours. Thatfateful day cost shareholders a staggering $120 billion.

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