The technology sector has been the finest performer among all of the S&P sectors since last year, increasing almost 9.5% y-o-y, outstripping the S&P500’s 5.3%. After the financial sector surged post the reforms, lag behind. Today investors are turning to companies which will grow as the economy betters, and tech stocks are the best-positioned ones to prosper, being less prone to changes in deregulation or interest rates. This year, while big-cap tech names have surged, it is the lesser-known ETF stocks that are making the news. Listed below are some of the hottest tech ETF stocks to buy in 2017:
Ark Innovation ETF
Ark is an actively-managed ETF which tracks tech stocks that gain advantages from advancements, improvements and innovation in one of following particulars – Web x.0, genomics or industrial innovation, following the investment theme of disruptive innovation. The topmost holdings for this ETF are Amazon, Stratasys, and Tesla, and it isn’t inexpensive – the ETF charges 75 bps as operating expenditure. However, it is in line with other niche funds. The ETF also has AUM of just $19 million (assets under management), so it is better suited for investors who have a higher tolerance for risk. The fund has been around 22% up since its commencement two-and-a-half years ago.
Global X Social Media ETF
This ETF provides access to a broad gamut of the best social media stocks across the globe. One of the top holdings is revolutionary social media behemoth Facebook, which rallied quite strongly this year. The ETF has AUM of $89 million about 50% of its assets are invested globally, mainly in Japanese (9%) and Chinese (27%) firms, whose strong performance is one of the reasons for this ETF’s outperformance. The excellent financial performances of the Chinese tech firms is one of the biggest contributions to this ETF’s outperformance. The Global X Social Media ETF charges 65bps as fees and has increased by 15% in 2017.
PowerShares NASDAQ Internet Portfolio
How the biggest and most liquid US-listed internet-related business companies perform is tracked by the PowerShares Internet Portfolio ETF, which features Amazon, Priceline, Facebook and Netflix as its topmost holdings. The ETF, which has $317 million in AUM, has 13% assets invested in global firms, has increased by more than 14% this year, and has an expense ratio of 60 bps.
Global X Internet of Things ETF (SNSR)
The SNSR ETF is a pioneer of sorts – it’s the very first ETF to target the hot Internet of Things (IoT) segment. The ETF tracks companies which benefit from the broader adoption of the IoT technology and follows a modified market weighing scheme with a single security cap of 6%. The ETF tracks stocks as such as Mobileye and Skyworks, among others, has risen 14% in 2017, has $38 million in AUM and charges 68 bps for expenses.