5 Best-Performing Tech ETFs for 2023
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Technology stocks are often high risk, high reward: While some go on to become the next Amazon or Apple, others crash and burn. Technology ETFs smooth out some risks by owning a collection of tech stocks rather than just one. This makes it more likely for you to enjoy the benefits of a potential tech stock winner without the risk of tanking your portfolio when a tech stock loser drops out of the race.
Best-performing tech ETFs
Below are the best-performing tech ETFs based on five-year returns.
Ticker | Name | 5-year return |
|---|---|---|
SMH | VanEck Semiconductor ETF | 167.08% |
XLK | Technology Select Sector SPDR Fund | 142.72% |
VGT | Vanguard Information Technology ETF | 135.94% |
IYW | iShares U.S. Technology ETF | 126.32% |
QQQ | Invesco QQQ Trust | 106.12% |
Data is current as of March 30, 2023. Data is intended for informational purposes only.
What is a tech ETF?
A technology ETF is an exchange-traded fund that invests in companies in the technology sector. Tech ETFs include companies that create and distribute hardware, such as computers, smartphones, semiconductors and other electronics, and software, such as artificial intelligence, cybersecurity and cloud technology.
NerdWallet rating 5.0 /5 | NerdWallet rating 4.7 /5 | NerdWallet rating 5.0 /5 |
Fees $0 per trade for online U.S. stocks and ETFs | Fees $0 per trade | Fees $0 per trade. Other fees apply. |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion Get $100 when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply. | Promotion Up to $600 when you invest in a new Merrill Edge® Self-Directed account. | Promotion None no promotion available at this time |
Why invest in tech ETFs?
Tech ETFs could be an attractive option for investors looking for high growth potential. They may increase your odds of earning higher returns, as you might if you invested in individual tech stocks, but tech ETFs may carry less risk because of diversification.
And while it’s impossible to know if investing in tech will guarantee you massive gains long-term, diversifying the companies in your portfolio through an ETF can help you safeguard against risk.
Learn more
On a similar note...
