Top Technology Sector ETFs to Watch in 2017
Explore the top technology sector ETFs of 2017, highlighting key funds like Ark Innovation, Social Media, Internet, and IoT ETFs. Discover their holdings, performance, and investment details to help you make informed decisions. Perfect for tech-focused investors seeking growth opportunities in emerging sectors.
Top Technology Sector ETFs to Watch in 2017
The tech industry has outperformed all other S&P sectors over the past year, posting nearly a 9.5% growth compared to the S&P 500's 5.3%. Following a financial sector rebound after reforms, investors are now focusing on companies poised for growth that are less affected by regulatory or interest rate shifts. While major tech firms have surged, lesser-known ETFs are gaining attention. Below are some of the most promising tech ETFs to consider in 2017:
Ark Innovation ETF
This actively-managed ETF focuses on tech companies benefiting from innovation across web, genomics, and industrial sectors, emphasizing disruptive advancements. Top holdings include Amazon, Stratasys, and Tesla. With an expense ratio of 0.75%, it aligns with niche funds, but its $19 million in assets suggests a higher risk tolerance is advised. Since its launch two and a half years ago, the fund has gained roughly 22%.
Global X Social Media ETF
Providing exposure to leading social media companies globally, this ETF’s holdings include Facebook, which performed strongly this year. With $89 million AUM, about 50% of assets are invested internationally, notably in Japan (9%) and China (27%). Robust performance from Chinese tech firms boosts this ETF’s return. It charges a fee of 0.65% and has increased by 15% in 2017.
PowerShares NASDAQ Internet Portfolio
Tracking the performance of top U.S.-listed internet companies like Amazon, Facebook, Netflix, and Priceline, this ETF has an AUM of $317 million. Approximately 13% of assets are invested globally, and the fund has appreciated over 14% this year with an expense ratio of 0.60%.
Global X Internet of Things ETF (SNSR)
As the first ETF targeting the Internet of Things (IoT) segment, SNSR invests in companies benefiting from broader IoT adoption. It employs a modified market weighting scheme with a cap of 6% per security, including stocks like Mobileye and Skyworks. With a 14% rise in 2017, $38 million AUM, and an expense fee of 0.68%, it represents a unique investment in emerging tech.
