7 Best Tech ETFs to Buy Now

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

By Matthew Frankel, CFP – Updated Jan 22, 2026 at 2:12 PM EST

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.
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Tech ETFs, or exchange-traded funds, are vehicles that allow you to invest in an entire basket of technology stocks in a single investment that trades just like a common stock. There have been some massive winners in the tech sector in recent years, but there has also been considerable turbulence.

Exchange-Traded Fund (ETF)

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

On the one hand, exciting new technologies like artificial intelligence (AI) have created many potential investment opportunities. But on the other hand, stock market volatility makes many investors hesitant to pick individual tech stocks.

That's where exchange-traded fund (ETF) investing comes in. An ETF allows you to invest in a specific area of the stock market without the downsides of picking individual stocks.

There are several excellent ETFs that focus on either the overall tech sector or a specific part of it. These can provide exposure to the high-potential tech space in your portfolio, but without the risks associated with investing in individual companies. In this article, we'll discuss seven top tech ETFs that are worth considering for investors looking to add diversified tech exposure to their portfolios.

Seven best tech ETFs

Ticker Information Table
Name and ticker	Current price
Vanguard Information Technology ETF (NYSEMKT:VGT)	$736.44
Select Sector SPDR Trust - State Street Technology Select Sector SPDR ETF (NYSEMKT:XLK)	$142.08
VanEck ETF Trust - VanEck Semiconductor ETF (NASDAQ:SMH)	$397.68
iShares Trust - iShares Cybersecurity And Tech ETF (NYSEMKT:IHAK)	$44.73
Invesco QQQ Trust (NASDAQ:QQQ)	$616.52
Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT:RSPT)	$46.69
Ark ETF Trust - Ark Innovation ETF (NYSEMKT:ARKK)	$73.44

Data as of Feb 4, 2026. Showing 7 of 7 tickers.

Let's take a closer look at each of these ETFs:

1. Vanguard Information Technology ETF

Vanguard is well-known for its low-cost index funds. The Vanguard Information Technology ETF certainly falls into this category, with a rock-bottom 0.09% expense ratio. This means that for every $10,000 you invest, your annual fund expenses are just $9. To clarify, an expense ratio isn't a fee you have to pay. It will simply be reflected in the ETF's performance over time.

This ETF tracks a broad index of U.S. tech companies of all sizes. However, it is a market-cap-weighted ETF, so its top holdings make up a larger proportion of its assets. In fact, the top three holdings account for 44% of the fund's total assets:

Apple (AAPL -0.20%)
Microsoft (MSFT -2.86%)
Nvidia (NVDA -2.82%)

In short, the ETF is an excellent choice for investors who want a set-it-and-forget-it way to invest in the overall information technology sector.

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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 is offered by State Street (STT -1.83%). 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 also not go wrong with either.

3. VanEck Semiconductor ETF

Now, we're getting into more specific ways to invest in tech stocks through ETFs. The VanEck Semiconductor ETF 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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Risks and challenges of investing in tech ETFs

All stocks have the risk of volatility and losing money. And while ETFs can help you minimize the risk of your entire investment getting wiped out, or of losing a ton of money due to the poor performance of any single stock, there's considerable risk involved with stock market investing.

That's especially true with tech ETFs, which tend to be more volatile than the overall stock market. For example, the Ark Innovation ETF has a beta that suggest it's roughly twice as volatile as the typical S&P 500 ETF.

Specific risks and challenges to consider when investing in tech ETFs include:

Company concentration - One of the main reasons to invest in ETFs is to minimize your exposure to any single stock, but as you've seen with some of these ETFs, the exposure to mega-cap tech stocks like Nvidia and Microsoft can be substantial.
Sector concentration - If AI investment slows down, for example, your investment could suffer more than if you owned a diversified index fund.
Valuation risk - Technology stocks (especially in 2026) tend to command premium valuations due to the growth of AI and other tech trends.

The bottom line on investing in tech ETFs

As you can see, not all tech ETFs are identical. Some track a broad index of tech companies. Others track more specialized baskets of stocks. And some take an actively managed approach or weigh their portfolios differently.

The best course of action, if you're thinking about adding some tech exposure to your portfolio, is to compare each to see which is best suited to your goals and risk tolerance.

FAQ

Tech ETF FAQ

About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. 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, The National Desk, and other TV networks and publications for his 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.