How to Invest in the Technology Sector (Updated 2024)

The evolution of technology has undoubtedly captured the interest of the public and investors, as innovation in different categories continues to proceed at an extraordinary pace.

With so much growth in the tech industry over the past two decades, technological developments are disrupting and shaping our cultural fabric at an unprecedented speed. Industries such as finance, real estate, transportation and healthcare are being transformed with current technological advances

What Should Investors Know About the Tech Market?

The past decade has seen the evolution of countless technology-related industries.

Investment in the Technology Sector

In the vast landscape and scope of the technology sector, there are countless ways that investors can gain exposure to transformative and disruptive technologies.

Exchange-traded funds (ETFs) provide exposure to a basket of securities and are a popular and often cost-effective method of investing. Here’s a brief overview of some tech ETFs to consider

  1. iShares US Technology ETF (ARCA:IYW): This ETF started on November 12, 2001 and has 138 securities. It covers big names in technology like Microsoft, Apple, Meta Platforms, and Alphabet.
  2. Technology Select Sector SPDR (ARCA:XLK): This fund has 66 securities and was launched on December 16, 1998. It also holds important names, including NVIDIA, Broadcom and Cisco, along with Apple, Microsoft and Alphabet
  3. .

  4. iShares Global Tech ETF (ARCA:IXN): Unlike the iShares US Technology ETF, this iShares fund focuses on technology companies from around the world. Founded in 2001, it provides exposure to Japan, Korea, Taiwan and Germany, but it also offers a percentage of exposure to U.S. companies. Its international positions include Samsung Electronics and Taiwan Semiconductor Manufacturing Company.

More experienced investors or those willing to do their own research may want to look at stocks in the technology sector. Large-cap tech stocks are a good starting point, but it’s also possible to be specific — artificial intelligence, robotics, esports, virtual reality and blockchain are just a few of the industry niches that might interest
technology enthusiasts.

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