Stock markets remain volatile as the U.S.-Iran conflict continues and oil prices soar. In this uncertain backdrop, investors seeking to mitigate individual stock-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 – SPDR NYSE Technology ETF (XNTK), Fidelity MSCI Information Technology Index ETF (FTEC), and Dan IVES Wedbush AI Revolution ETF (IVES), each rated a Strong Buy and having at least 20% upside potential, as indicated by the average of analysts’ price targets on their holdings.
Using TipRanks’ Stock Comparison Tool, let’s see how these ETFs stack against each other.
SPDR NYSE Technology ETF (XNTK)
The XNTK ETF tracks the NYSE Technology Index, which comprises 35 leading U.S.-listed technology-related companies. It offers exposure to the information technology sector and technology-related stocks in the consumer discretionary sector.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, XNTK scores a Strong Buy rating. The average price target of $347.40 for the XNTK ETF implies 20.6% upside potential.
Currently, the top three holdings of the XNTK ETF are Micron Technology (MU), Intel (INTC), and Lam Research (LRCX).
Fidelity MSCI Information Technology Index ETF (FTEC)
The FTEC tracks the MSCI USA IMI Information Technology Index and provides exposure to stocks in the information technology sector in the U.S. equity market. It comprises stocks of tech giants and innovative leaders, spanning across various sub-sectors, including software, hardware, semiconductors, and IT services.
Based on a weighted average of analyst ratings on its holdings, FTEC scores a Strong Buy rating. The average price target of $288.41 for the FTEC ETF indicates 25.6% upside potential.
Currently, the top three holdings of the FTEC ETF are Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
Dan IVES Wedbush AI Revolution ETF (IVES)
The IVES ETF tracks the Solactive Wedbush Artificial Intelligence Index and offers investors exposure to a diversified portfolio of companies that are at the cutting edge of AI technology.
Based on a weighted average of analyst ratings on its holdings, the IVES ETF scores a Strong Buy rating. The average price target of $39.69 for the IVES ETF indicates about 27% upside potential.
Currently, the top three holdings of the IVES ETF are Amazon (AMZN), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing (TSM) or TSMC.
