After a bit of a rebound, the Nasdaq Composite index is no longer officially in correction territory, for now at least, down by just 9% from the recent highs as of this writing. However, when it comes to finding excellent ETFs, there are still some excellent bargains for long-term investors.
With that in mind, here are two ETFs, one passive index fund and one actively managed fund, that concentrate on technology stocks and are still down by more than 10%.
A top-notch technology index fund
The Vanguard Information Technology ETF (VGT 1.86%) is an index fund offered by low-cost fund provider Vanguard, and with a 0.09% expense ratio, it's one of the cheapest ways to get broad technology exposure. Even after the market's recent rebound, it's still more than 11% below its 2025 peak.
In a nutshell, this is a fund that tracks the overall information technology sector, more commonly referred to as simply "the tech sector." It's a weighted index of about 315 stocks, and as you might expect, it's heavily weighted toward some of the Magnificent Seven stocks. In fact, the fund's top three holdings -- Apple, Nvidia, and Microsoft -- make up 46% of the assets.
NASDAQ: AAPL
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Interestingly, some of the largest tech companies, such as Amazon.com, Alphabet (Google's parent company), and Tesla are notably absent, as they aren't technically included in the information technology sector. But this ETF can be an excellent way to get exposure to some of the hottest technology trends, and for a significantly lower price than you would have paid earlier this year.
Cathie Wood's flagship ETF
The Ark Innovation ETF (ARKK 2.50%) is the largest ETF offered by notable tech investor Cathie Wood's Ark Invest. After the recent market volatility, it still trades for about 21% below its February peak, even after a bit of a rebound.
This is an actively managed ETF, not an index fund, which means that portfolio managers (in this case, Cathie Wood) select stocks with the goal of beating a certain benchmark index. And this is a portfolio of about 36 excellent technology stocks, many of which have been beaten down in this year's market turbulence despite being great businesses with tremendous potential.
Just to name a few, the fund's top five holdings are Tesla, Roku, Roblox, Coinbase, and Palantir. You'll also find several other major tech stocks, as well as some small caps that Wood and her team feel have a lot of potential.
The Ark Innovation ETF has a 0.75% expense ratio, which is higher than you'd expect from the typical index fund but is on par with what other actively managed funds charge.
In full disclosure, I already own a different Cathie Wood ETF in my portfolio, the Ark Autonomous Technology & Robotics ETF (ARKQ 1.77%). I bought that one specifically for AI exposure. But the Ark Innovation ETF seems like an attractive way to get exposure to some of the highest-potential technology stocks at a discount, and it's on my watch list right now.
2 great choices for long-term investors
Although I think these both look appealing right now, it's important to emphasize that I'm saying that from a long-term perspective. I have no idea what the market, or these two funds, will do over the coming weeks or months, and if we get more market volatility, it's entirely possible they could fall further. However, if you measure your investment returns in periods of multiple years, now could be a great time to take a closer look.
