https://money.usnews.com/investing/funds/slideshows/9-tech-etfs-to-buy-in-a-volatile-market?src=usn_invested_nlJan. 24, 2019
Technology stocks have been highly volatile in the last few months, with big-name picks like Apple (ticker: AAPL) and Facebook (FB) coming under pressure. But long-term investors should know the tech sector holds great promise, and deserves a major position in any portfolio.
Roughly 20 percent of the S&P 500's value is tech stocks – the largest single sector among any of the 11 major industry groups. If you're looking beyond the short-term roller-coaster ride of tech stocks to long-term growth, or simply if you want to make a swing trade on what you think are bargain valuations, here are nine exchange-traded funds with different ways of playing tech stocks.
1. Technology Select Sector SPDR Fund (XLK). The largest tech-focused ETF by assets with over $17 billion under management, the XLK fund is a simple and effective way to play the sector. Comprised of about 70 large-cap technology companies, XLK touches a wide range from software to semiconductors to consumer technology such as smartphones and tablets.
One potential drawback is the fund is dominated by the big and familiar players, with Microsoft Corp. (MSFT) at about 18 percent of the portfolio and Apple representing another 16 percent. Those are two of the most popular stocks for many traders so perhaps you'll be OK with that emphasis on these names, but it's something to note.
2. Vanguard Information Technology ETF (VGT). For a slightly broader play of the tech sector, this Vanguard ETF is a good alternative. With more than 300 holdings, you’ll get exposure to favorites like Apple and Microsoft but also a wide array of small and mid-sized companies.
The fund is not without its quirks, however, with payments processor Visa (V) as one of the top five components. Sure, Visa is increasingly interested in using mobile technologies to tap into future growth, but in many ways the company is credit cards and transaction fees. Still, VGT is worth a look if you're looking to cast a wider net and comfortable with a generous definition of tech stocks. – Jeff Reeves
