Global stock markets remain under pressure due to the escalating geopolitical tensions in the Middle East. The pullback in several technology stocks presents an attractive buying opportunity. However, investors who want to avoid company-specific risks can consider technology exchange-traded funds (ETFs), which lower the overall risk through diversification. Tech ETFs offer exposure to stocks in several attractive growth areas like artificial intelligence (AI), cybersecurity, semiconductors, cloud computing, blockchain, and quantum computing.
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New trading tool for GEV bullsHere, we will look at three technology ETFs – Defiance AI & Power Infrastructure ETF (AIPO), First Trust Expanded Technology ETF (XPND), and Baron Technology ETF (BCTK) – all with a Strong Buy rating and at least 25% upside potential.
Using TipRanks’ Stock Comparison Tool, let’s see how these ETFs stack against each other.
Defiance AI & Power Infrastructure ETF (AIPO)
The AIPO ETF tracks the MarketVector US Listed AI and Power Infrastructure Index. It is suitable for investors seeking to capitalize on the AI boom through exposure to innovative companies focused on energy solutions, electrical grid advancements, data center operations, and AI hardware.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, AIPO scores a Strong Buy rating. The average price target of $31.99 for the AIPO ETF implies about 25.7% upside potential.
Currently, the top three holdings of the AIPO ETF are GE Vernova (GEV), Eaton Corporation (ETN), and Quanta Services (PWR).
First Trust Expanded Technology ETF (XPND)
The XPND ETF seeks to provide long-term capital appreciation via exposure to information technology companies or financial and communication services companies whose operations are principally derived from and/or dependent upon technology. It comprises companies in cutting-edge fields such as AI, cybersecurity, cloud computing, and the Internet of Things (IoT), among others.
Based on a weighted average of analyst ratings on its holdings, XPND scores a Strong Buy rating. The average price target of $43.41 for the XPND ETF implies about 31% upside potential.
Currently, the top three holdings of the XPND ETF are Palantir Technologies (PLTR), Cisco (CSCO), and Netflix (NFLX).
Baron Technology ETF (BCTK)
The BCTK ETF seeks to deliver capital appreciation through investments in technology and technology-related growth companies. It helps investors gain exposure to the growth potential of both established tech giants and emerging disruptors.
Based on a weighted average of analyst ratings on its holdings, BCTK scores a Strong Buy rating. The average price target of $32.35 for the BCTK ETF implies about 36.5% upside potential.
Currently, the top three holdings of the BCTK ETF are Nvidia (NVDA), Taiwan Semiconductor Manufacturing Company (TSM), and Broadcom (AVGO).
