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Interested in investing in technology ETFs? Here the Investing News Network takes a look at the top five by assets under management.

The technology industry is worth trillions on a global scale, and many want a piece of the pie. Technology exchange-traded funds (ETFs) offer investors a way to tap into that wealth.

The technology space is huge, and breakthrough innovations in artificial intelligence, cloud computing, fintech and robotics are adding further growth opportunities to this market.

However, tech is also a highly competitive landscape, and emerging technology companies that are here today might be gone tomorrow. The volatile nature of this space can make investing in technology stocks a risky gamble.


Technology ETFs continue to be a popular alternative investment strategy that investors can use to gain exposure to tech stocks. ETF shares offer market participants new avenues for stock and bond investing, while providing lower expenses and easier access to the financial services industry.

From value to growth investment styles, many different investment objectives can be targeted across the plethora of technology ETFs available on the market. These investment vehicles also provide the option to enter mutual funds or individual technology stocks, or to participate in initial public offerings.

There are 119 technology ETFs, as per data from ETFdb.com. Here the Investing News Network looks at five of the top options by assets under management; all numbers were current as of July 19, 2022.

1. Invesco QQQ Trust (NASDAQ:QQQ)

Assets under management: US$160.88 billion

The Invesco QQQ Trust offers exposure to tech stocks on the NASDAQ. According to ETFdb.com, this is one of the most popular ETF products. It’s also the second longest-lived product on this list, having launched in 1999.

The ETF has 103 holdings, including Apple (NASDAQ:AAPL) at a weight of 13.32 percent, Microsoft (NASDAQ:MSFT) at a weight of 10.53 percent and Amazon (NASDAQ:AMZN) at a weight of 6.24 percent.

2. Vanguard Information Technology ETF (ARCA:VGT)

Assets under management: US$42.25 billion

Founded in January 2004, the Vanguard Information Technology ETF has a diverse portfolio, with a focus on small- and micro-cap stocks, as well as large-cap companies.

This tech ETF has 381 holdings, with Apple weighing in on top at 22.94 percent. Microsoft takes up 18.8 percent of the fund, followed by NVIDIA (NASDAQ:NVDA) at 3.9 percent.

3. Technology Select Sector SPDR Fund (ARCA:XLK)

Assets under management: US$39.28 billion

The Technology Select Sector SPDR Fund holds 78 technology companies and is the most seasoned tech ETF on the list, having begun trading in December 1998. Like many of the ETFs on this list, it typically avoids smaller- and mid-cap companies and instead focuses on the big names in the technology sector.

Its top holdings are Apple at 24.25 percent, Microsoft at 22.13 percent and NVIDIA at 4.48 percent.

4. ARK Innovation ETF (ARCA:ARKK)

Assets under management: US$9.05 billion

The ARK Innovation ETF began in October 2014 and has 36 holdings. According to ETFdb.com, “The stated goal of ARKK is to invest in companies that are poised to profit from ‘disruptive innovation’ like artificial intelligence, DNA technologies, energy innovation, automation, financial technology and the increased use in cloud computing.”

The fund’s top holdings differ widely from its peers. Zoom (NASDAQ:ZM) weighs in at 8.5 percent, followed by Tesla (NASDAQ:TSLA) at 8.44 percent and Roku (NASDAQ:ROKU) at 7.79 percent.

5. KraneShares CSI China Internet ETF (ARCA:KWEB)

Assets under management: US$7.48 billion

The KraneShares CSI China Internet ETF was started in July 2013 and has 43 holdings. This fund is heralded as “the only ETF on the market that offers pureplay exposure to Chinese software and information technology stocks that are China’s answer to U.S. firms like Amazon and Facebook (NASDAQ:FB).”

In terms of market cap, large-cap companies comprise the majority of this fund, which is centered on internet-focused companies. The top holdings of the KraneShares CSI China Internet ETF are Alibaba Group Holding (HKEX:9988) at 10.8 percent, Tencent Holdings (HKEX:0700) at 9.37 percent and Meituan (HKEX:3690) at 7.52 percent.

This is an updated version of an article first published by the Investing News Network in 2018.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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