Despite ongoing concerns about high bond yields and geopolitical risks, several investors remain interested in technology stocks for their long-term growth potential. In this regard, technology exchange-traded funds (ETFs) provide investors with diversified exposure to some of the fastest-growing areas in the tech world while reducing company-specific risk. These ETFs include companies across artificial intelligence (AI), cloud computing, semiconductors, cybersecurity, blockchain, and quantum computing.
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Explore CRDU for 2X leverage on CRDOHere are three technology ETFs with a “Strong Buy” consensus rating that have attractive upside potential, according to Wall Street analysts’ outlook on their holdings: Innovator Loup Frontier Tech ETF (LOUP), Fidelity Disruptive Technology ETF (FDTX), and iShares Expanded Tech Sector ETF (IGM).
Using TipRanks’ ETF Comparison Tool, let’s see how these ETFs stack against each other.
Innovator Loup Frontier Tech ETF (LOUP)
The LOUP ETF tracks the Deepwater Frontier Tech Index and comprises companies that are expected to drive the future of technology, including AI, fintech, robotics, autonomous and electric vehicles (EVs), and virtual/augmented reality.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, LOUP scores a Strong Buy rating. The average price target of $108.88 for the LOUP ETF implies 28% upside potential.
Currently, the top three holdings of the LOUP ETF are Sterling Infrastructure (STRL), Credo Technology (CRDO), and BE Semiconductor (NL:BESI). The LOUP ETF has rallied 59% over the past year.
Fidelity Disruptive Technology ETF (FDTX)
The FDTX ETF seeks to deliver long-term capital growth by providing exposure to stocks of disruptive technology companies. It identifies companies that are focused on innovative developments that could signal new directions for delivering products and services to customers.
Based on a weighted average of analyst ratings on its holdings, FDTX scores a Strong Buy rating. The average price target of $55.09 for the FDTX ETF indicates 13.2% upside potential.
Currently, the top three holdings of the FDTX ETF are Micron Technology (MU), Marvell Technology (MRVL), and Taiwan Semiconductor Manufacturing Company (TSM). The FDTX ETF has gained about 38% over the past year.
iShares Expanded Tech Sector ETF (IGM)
The IGM tracks the S&P North American Expanded Technology Sector Index and is composed of U.S. and Canadian technology and select communication services companies. It is suitable for investors seeking exposure to the North American hardware, software, and interactive media industries.
Based on a weighted average of analyst ratings on its holdings, the IGM ETF scores a Strong Buy rating. The average price target of $178.60 for the IGM ETF indicates 17% upside potential.
Currently, the top three holdings of the IGM ETF are Broadcom (AVGO), Nvidia (NVDA), and Apple (AAPL). The IGM ETF has advanced 49% over the past year.
