Technology stocks continue to draw attention despite ongoing volatility amid geopolitical tensions in the Middle East and macro uncertainties. Those looking to avoid company-specific risks can consider technology exchange-traded funds (ETFs), which reduce overall risk by diversifying across various stocks.
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Trade AMZN with leverageTech ETFs offer exposure to stocks in several attractive growth areas like artificial intelligence (AI), cloud computing, blockchain, quantum computing, semiconductors, and cybersecurity.
Here, we will look at three technology ETFs: KraneShares Hang Seng TECH Index ETF (KTEC), ALPS Disruptive Technologies (DTEC), and Xtrackers US National Critical Technologies ETF (CRTC) that can offer more than 20% upside potential, according to the outlook of Wall Street analysts on their holdings.
Using TipRanks’ ETF Comparison Tool, let’s see how these ETFs stack against each other.
KraneShares Hang Seng TECH Index ETF (KTEC)
The KTEC ETF tracks the Hang Seng TECH Index, which comprises the 30 largest companies in Hong Kong’s technology sector. It provides investors exposure to innovative companies with strong research & development, high revenue growth, and a presence in key growth areas such as cloud, e-commerce, fintech, and internet.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, KTEC scores a Strong Buy rating. The average price target of $19.14 for the KTEC ETF implies about 35% upside potential.
Currently, the top three holdings of the KTEC ETF are Meituan (HK:3690), BYD (HK:1211), and Xiaomi (HK:1810).
ALPS Disruptive Technologies (DTEC)
The DTEC ETF tracks the Indxx Disruptive Technologies Index and provides exposure to companies providing disruptive technologies. It includes companies that are reshaping the market landscape through digital transformation, automation, and breakthrough innovations.
Based on a weighted average of analyst ratings on its holdings, DTEC scores a Moderate Buy rating. The average price target of $57.43 for the DTEC ETF indicates 23.1% upside potential.
Currently, the top three holdings of the DTEC ETF are Nebius (NBIS), Datadog (DDOG), and Allegro Microsystems (ALGM).
Xtrackers US National Critical Technologies ETF (CRTC)
The CRTC ETF tracks the Solactive Whitney U.S. Critical Technologies Index and provides exposure to companies in sectors that are not only shaping the future but are also integral to maintaining a nation’s strategic edge.
Based on a weighted average of analyst ratings on its holdings, the CRTC ETF scores a Strong Buy rating. The average price target of $46.14 for the CRTC ETF indicates 21.2% upside potential.
Currently, the top three holdings of the CRTC ETF are Nvidia (NVDA), Alphabet (GOOGL), and Amazon (AMZN).
