Technology ETF or Tech ETF refers to the exchange-traded funds, which invests in the growing technologies across the globe. In the 1990s, the world has seen the power of the Internet in full force. Both the IT and BPO industries have emerged as major sectors for technological developments. Thus, these industries have led to technology ETFs.
Technology ETFs can be classified into 3 categories, which are based on their holdings. These include Sub Sectors, Broad Tech Sectors, and Actively Managed Technology ETFs. The Sub Sectors have specific holdings include semi-conductors and software. One of the most prominent Sub Sector Tech ETF is the Goldman Sachs Networking Fund, which is considered a high concentration and liquidity on a sector.
Broad Tech Sectors have an extensive range of technological holdings. More so, these sectors have a substantial portfolio. Two of the most prominent Broad Tech Sectors include S&P Select Sector SPDR Fund and Shares Dow Jones U.S. Technology Fund. S&P Select Sector …Continue reading