Investors remain interested in technology stocks despite ongoing volatility due to geopolitical tensions in the Middle East and macro uncertainties. Those looking to avoid individual stock-specific risks can consider technology exchange-traded funds (ETFs), which reduce overall risk by diversifying across various stocks.
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Forget margin or options. Here's how the pros trade NVDATech 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 – iShares Global Tech ETF (IXN), First Trust NASDAQ-100 Technology Sector Index Fund (QTEC), and iShares Exponential Technologies ETF (XT) with more than 10% 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.
iShares Global Tech ETF (IXN)
The IXN ETF tracks the S&P Global 1200 Information Technology 4.5/22.5/45 Capped Index (Net) and offers exposure to electronics, computer software, hardware, and information technology companies.
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, IXN scores a Moderate Buy rating. The average price target of $132.91 for the IXN ETF implies 14.4% upside potential. IXN has jumped 68% over the past year.
Currently, the top three holdings of the IXN ETF are Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT).
First Trust NASDAQ-100 Technology Sector Index Fund (QTEC)
The QTEC ETF tracks the Nasdaq-100 Technology Sector Index and offers exposure to tech giants and innovative companies across software, hardware, semiconductors, and other technology-related businesses.
Based on a weighted average of analyst ratings on its holdings, QTEC scores a Strong Buy rating. The average price target of $282.85 for the QTEC ETF indicates 12.5% upside potential. QTEC has risen more than 59% over the past year.
Currently, the top three holdings of the QTEC ETF are Marvell Technology (MRVL), Intel (INTC), and Monolithic Power Systems (MPWR).
iShares Exponential Technologies ETF (XT)
The XT ETF tracks the Morningstar Exponential Technologies Index (Net) and comprises companies with significant exposure to exponential technologies that replace older technologies and can deliver notable benefits. It is suitable for investors interested in cutting-edge technologies, including robotics, nanotechnology, bioinformatics, and artificial intelligence (AI).
Based on a weighted average of analyst ratings on its holdings, the XT ETF scores a Moderate Buy rating. The average price target of $83.60 for the XT ETF indicates 12.7% upside potential. XT has advanced about 40% over the past year.
Currently, the top three holdings of the XT ETF are Texas Instruments (TXN), Nvidia, and Analog Devices (ADI).
