Technology exchange-traded funds (ETFs) offer investors a diversified and efficient way to gain exposure to the fast-growing tech sector while limiting company-specific risks. 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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Here are three technology ETFs with a “Strong Buy” consensus rating that have attractive upside potential, according to Wall Street analysts’ outlook on their holdings: iShares U.S. Tech Breakthrough Multisector ETF (TECB), VanEck Digital Transformation ETF (DAPP), and Fidelity MSCI Information Technology Index ETF (FTEC).
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 that could benefit from various breakthrough technologies, including robotics and AI, cloud and data technology, 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 $78.84 for the TECB ETF implies about 15% upside potential.
Currently, the top three holdings of the TECB ETF are Advanced Micro Devices (AMD), Intel (INTC), and Alphabet (GOOGL).
VanEck Digital Transformation ETF (DAPP)
The DAPP ETF tracks the MVIS Global Digital Assets Equity Index and comprises companies driving the transformation of digital assets. It provides investors with exposure to exchanges, miners, and other digital asset infrastructure companies.
Based on a weighted average of analyst ratings on its holdings, DAPP scores a Strong Buy rating. The average price target of $27.61 for the DAPP ETF indicates 27.5% upside potential.
Currently, the top three holdings of the DAPP ETF are Hut 8 (HUT), Iren Limited (IREN), and Block (XYZ).
Fidelity MSCI Information Technology Index ETF (FTEC)
The FTEC ETF tracks the MSCI USA IMI Information Technology 25/50 Index and is suitable for investors looking to capitalize on the rapid advancements and growth within the tech sector.
Based on a weighted average of analyst ratings on its holdings, the FTEC ETF scores a Strong Buy rating. The average price target of $298.27 for the FTEC ETF indicates 11.4% upside potential.
Currently, the top three holdings of the FTEC ETF are Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
