Technology exchange-traded funds (ETFs) offer investors a diversified and efficient investment option to gain exposure to the fast-growing technology sector while limiting company-specific risk. Interestingly, tech ETFs comprise stocks across key growth areas such as artificial intelligence (AI), cloud computing, blockchain, semiconductors, cybersecurity, and quantum computing.
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Forget margin or options. Here's how the pros trade NVDAHere are three technology ETFs with a “Strong Buy” consensus rating that have attractive upside potential, according to Wall Street analysts’ outlook on their holdings:
Using TipRanks’ ETF Comparison Tool, let’s see how these ETFs stack against each other.
iShares U.S. Tech Breakthrough Multisector ETF (TECB)
The TECB ETF tracks the NYSE FactSet U.S. Tech Breakthrough Index and provides exposure to companies at the forefront of innovation in the technology sector, with a focus on lucrative areas such as robotics and AI, cloud and data tech, cybersecurity, genomics and immunology, and financial technology.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, TECB scores a Strong Buy rating. The average price target of $78.48 for the TECB ETF implies 15.2% upside potential.
Currently, the top three holdings of the TECB ETF are Advanced Micro Devices (AMD), Intel (INTC), and Nvidia (NVDA).
Dan IVES Wedbush AI Revolution ETF (IVES)
The IVES ETF tracks the Solactive Wedbush Artificial Intelligence Index and is suitable for investors seeking exposure to companies that are well-positioned to lead the AI transformation.
Based on a weighted average of analyst ratings on its holdings, IVES scores a Strong Buy rating. The average price target of $43.52 for the IVES ETF indicates about 20% upside potential.
Currently, the top three holdings of the IVES ETF are Advanced Micro Devices, Micron Technology (MU), and Broadcom (AVGO).
Vanguard Information Technology ETF (VGT)
The VGT ETF tracks the MSCI US IMI 25/50 Information Technology Index and offers exposure to companies in the rapidly evolving and innovation-driven information technology sector.
Based on a weighted average of analyst ratings on its holdings, the VGT ETF scores a Strong Buy rating. The average price target of $131.70 for the VGT ETF indicates 16.2% upside potential.
Currently, the top three holdings of the VGT ETF are Nvidia, Apple (AAPL), and Microsoft (MSFT).
