Investors keen to capitalize on the recent pullback in several technology stocks amid geopolitical concerns can consider technology exchange-traded funds (ETFs), as they help mitigate company-specific risks by diversifying across various stocks. Tech ETFs offer exposure to stocks in several attractive growth areas like artificial intelligence (AI), cloud computing, blockchain, quantum computing, semiconductors, and cybersecurity.
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New trading tool for NVDA bearsHere, we will look at three technology ETFs – Vanguard Information Technology ETF (VGT), iShares U.S. Technology ETF (IYW), and JPMorgan U.S. Tech Leaders ETF (JTEK) that have more than 30% 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.
Vanguard Information Technology ETF (VGT)
The VGT ETF tracks the MSCI US IMI 25/50 Information Technology Index and offers exposure to the rapidly evolving and innovation-driven tech sector. It comprises stocks of companies in the electronics and computer industries or that manufacture products by leveraging the latest applied science.
Based on a weighted average of analyst ratings on its holdings, VGT scores a Moderate Buy rating. The average price target of $965.84 for the VGT ETF implies 34.4% upside potential.
Currently, the top three holdings of the VGT ETF are Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
iShares U.S. Technology ETF (IYW)
The IYW ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index and provides exposure to giants and trailblazers of the tech industry. It comprises stocks of U.S. electronics, computer software and hardware, and information technology companies.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, IYW scores a Strong Buy rating. The average price target of $248.17 for the IYW ETF indicates 32.5% upside potential.
Currently, the top three holdings of the IYW ETF are Nvidia, Apple, and Alphabet (GOOGL).
JPMorgan U.S. Tech Leaders ETF (JTEK)
The JTEK ETF invests in stocks of innovative technology and tech-enabled companies. It includes stocks of companies that demonstrate strong leadership and innovation in key technology areas, such as software development, cloud computing, AI, and cybersecurity.
Based on a weighted average of analyst ratings on its holdings, JTEK scores a Moderate Buy rating. The average price target of $108.73 for the JTEK ETF implies about 33.2% upside potential.
Currently, the top three holdings of the JTEK ETF are Alphabet, Tesla (TSLA), and Take-Two Interactive (TTWO).
