How do tech ETFs fit into a diversified portfolio?

Tech ETFs can provide broad exposure to technology stocks or allow you to invest in a specific technology trend, such as artificial intelligence (AI) or cybersecurity. And it can do this without exposing you to excessive risk in any individual stock.

How do tech ETFs differ from individual tech stocks?

Tech ETFs spread your investment across an entire portfolio of technology stocks. The biggest difference is that your long-term investment performance will depend on the success of the overall technology sector or a specific tech industry, rather than the success or failure of any individual company.

What is the Big 6 Tech ETF?

There is no single ETF that invests in the six largest companies, but there are several that focus on mega-cap stocks, including the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK).

Does Fidelity have a tech ETF?

Fidelity has several technology-focused ETFs. The broad tech ETF is the Fidelity MSCI Information Technology Index ETF (NASDAQ: FTEC). In addition, Fidelity has ETFs that specialize in cloud computing, disruptive automation, crypto and digital payments, metaverse technology, and more.

Do tech ETFs pay dividends?

If the underlying stocks held by an ETF pay dividends, they are typically passed along to shareholders at regular intervals. However, it's worth noting that many tech stocks don't pay dividends, and those that do tend to have below-average dividend yields.

Can I invest in tech ETFs for long-term growth?

Yes, tech ETFs have a history of producing excellent returns over long periods of time. For example, over the past 20 years, the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq-100, has produced a 1,730% total return.

Best Tech ETFs for 2026 and How to Invest

Here's how to get tech exposure without the single-stock risk.

By Matthew Frankel, CFP – Updated Apr 20, 2026 at 6:37 PM EST | Fact-checked by Robin Hartill, CFP

Key Points

Tech ETFs allow diversified investment in tech sectors without the risks of individual stocks.
Top tech ETFs like Vanguard Information Technology offer low expense ratios for cost-effective investing.
Specialized tech ETFs, such as Ark Innovation, target high growth by actively managing innovative stocks.

Tech ETFs, or exchange-traded funds, allow you to invest in an assortment of technology stocks in a single investment.

There have been some massive winners in the tech sector in recent years, but there has also been considerable turbulence. On the one hand, exciting new technologies such as artificial intelligence (AI) have created numerous potential investment opportunities. On the other hand, stock market volatility makes many investors hesitant to pick individual tech stocks.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

A digital rendering of skyscrapers with technology symbols, like WiFi, PC, and Bluetooth, superimposed over it in a web of network connections. — Image source: Getty Images.

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Ticker Information Table
Name and ticker	Current price
Vanguard Information Technology ETF (NYSEMKT:VGT)	$102.53
Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK)	$157.64
VanEck ETF Trust - VanEck Semiconductor ETF (NASDAQ:SMH)	$487.46
iShares Trust - iShares Cybersecurity And Tech ETF (NYSEMKT:IHAK)	$46.37
Invesco QQQ Trust (NASDAQ:QQQ)	$656.69
Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT:RSPT)	$52.36
Ark ETF Trust - Ark Innovation ETF (NYSEMKT:ARKK)	$78.00

Data as of Apr 23, 2026. Showing 7 of 7 tickers.

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Asset

An asset is a resource used to hold or create economic value.

2. Technology Select Sector SPDR ETF

The Technology Select Sector SPDR ETF (XLK -0.43%) is offered by State Street (STT -0.26%). It is very close to the Vanguard fund, offering a similar asset size, a low 0.08% expense ratio, and a similar benchmark index. In fact, the fund's top holdings (and their respective weights) are almost identical to the Vanguard example.

Both ETFs give you broad exposure to the information technology sector. It's tough to say which is better than the other. Investors who want to invest in tech stocks will not go wrong with either.

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3. VanEck Semiconductor ETF

Now, we're getting into more specific ways to invest in tech stocks through ETFs. The VanEck Semiconductor ETF (SMH +2.23%) tracks an index of semiconductor manufacturers, commonly known as chipmakers. This can be an excellent way to invest in AI technology without having to buy individual stocks.

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Semiconductor

A semiconductor is a basic element or compound substance that conducts electricity in certain situations.

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7. Ark Innovation ETF

The first six ETFs all share one big characteristic: They are all passive funds. In other words, they are all designed to simply track an index of stocks and match its performance over time.

By contrast, the Ark Innovation ETF (ARKK -1.64%) is actively managed by well-known investor Cathie Wood and her team. Its goal is to beat the market over time, and it is designed to capitalize on innovative and rapidly growing tech companies. The fund's five largest holdings are:

Tesla (TSLA -2.85%)
CRISPR Therapeutics (CRSP +1.24%)
Tempus AI (NYSE:TEM)
Robinhood (HOOD -2.16%)
Advanced Micro Devices (AMD +1.93%)

The idea is to invest the fund's assets in the opportunities that seem most attractive at any given time. By doing so, the Ark Innovation ETF aims to outperform the overall tech sector. The fund hasn't exactly been a standout performer in the market downturn. However, if you're seeking the potential for market-beating performance over the long term, this ETF is worth a closer examination.

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Tech ETF FAQ

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

Matt Frankel, CFP has positions in Amazon. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Apple, Applied Materials, CRISPR Therapeutics, Hewlett Packard Enterprise, Microsoft, Nvidia, Roku, Taiwan Semiconductor Manufacturing, Tesla, Texas Instruments, and Varonis Systems. The Motley Fool recommends Broadcom and Coinbase Global and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

It seems like there is another high-profile data breach every other week, and the sophistication of threats (especially in the cloud) is increasing. Investing in cybersecurity stocks can be an interesting opportunity for patient long-term investors. The iShares Cybersecurity and Tech ETF (IHAK -3.44%) lets you concentrate your money in this technology subsector.

The ETF has a 0.47% expense ratio, which is comparable to those of similar-sized and specialized ETFs. It aims to track an index of cybersecurity stocks and has 38 holdings. In addition to many other names you may recognize, top holdings include:

Clear Secure (NASDAQ:YOU)

Akamai Technologies (AKAM -2.18%)

SentinelOne (S -4.79%)

5. Invesco QQQ ETF

No discussion of tech ETFs would be complete without mentioning the Invesco QQQ Trust (QQQ +0.17%). It is by far the largest Nasdaq-tracking ETF. The QQQ ETF has a relatively low 0.18% expense ratio and tracks the Nasdaq-100 index, which is essentially an index of the largest stocks listed on the Nasdaq exchange.

To be perfectly clear, the QQQ ETF isn't a pure tech ETF; it is just very tech-heavy. About 60% of the fund's assets are invested in the technology sector, and another 21% consists of consumer discretionary stocks (many of which are tech-adjacent). Top positions include:

Nvidia

Apple

Microsoft

Amazon (AMZN +0.99%)

Google parent Alphabet (GOOGL +0.64%)(GOOG +0.58%)

The Invesco QQQ ETF may be suitable for investors seeking passive exposure to a tech-heavy portfolio without relying exclusively on the technology sector.

6. Invesco S&P 500 Equal Weight Technology ETF

One major risk factor with all five ETFs discussed so far is that they're rather top-heavy. Because they are market-cap-weighted and there are several blue chip tech stocks with trillion-dollar market caps, they are highly concentrated in just a few stocks.

But maybe you don't want half of your money in just Nvidia, Apple, and Microsoft. The Invesco S&P 500 Equal Weight Technology ETF (RSPT -0.59%) aims to create a truly diversified basket of tech stocks.

This ETF allocates equal assets to each company in its index, which comprises 73 stocks. This means that a relatively small company in the index, such as Hewlett Packard Enterprise (HPE -1.44%), gets the same exposure as a massive company, such as Microsoft or Nvidia.

The 0.40% expense ratio is quite reasonable for a unique ETF like this. It could be a smart choice for investors who want to minimize their investment returns' dependence on a single company's success.

Best Tech ETFs for 2026 and How to Invest

Here's how to get tech exposure without the single-stock risk.

Key Points

Exchange-Traded Fund (ETF)

Asset

2. Technology Select Sector SPDR ETF

3. VanEck Semiconductor ETF

Semiconductor

7. Ark Innovation ETF

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Tech ETF FAQ

About the Author

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Stocks Mentioned

Premium Investing Services

Tech ETF FAQ

How do tech ETFs fit into a diversified portfolio?

How do tech ETFs differ from individual tech stocks?

What is the Big 6 Tech ETF?

Does Fidelity have a tech ETF?

Do tech ETFs pay dividends?

Can I invest in tech ETFs for long-term growth?

How to invest in tech ETFs

Risks and challenges

Benefits and risks of investing in tech ETFs

The bottom line on investing in tech ETFs

Related investing topics

FAQ

7 top tech ETFs for 2026

1. Vanguard Information Technology ETF

2. Technology Select Sector SPDR ETF

3. VanEck Semiconductor ETF

4. iShares Cybersecurity and Tech ETF

5. Invesco QQQ ETF

6. Invesco S&P 500 Equal Weight Technology ETF

7. Ark Innovation ETF