Technology ETFs - ETF Sector Report

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Investors seeking long-term aggressive holdings need not look beyond ETFs betting on the technology sector. Even though such ETFs experience relatively higher levels of volatility, they tend to outperform other categories when markets as a whole are seeing an uptrend. Recent results from tech firms have also shown that the sector is gearing up to enter a new era of success and prosperity. Further, prices are based on stronger fundamentals compared to their initial boom period, substantially reducing the risk involved.

Below we will share with you the top 5 top technology based ETFs.

SPDR S&P Semiconductor (XSD) tracks the S&P Semiconductor Select Industry Index. This ETF has a below average expense ratio of 0.35% compared to its category average of 0.51%. The largest holding in the ETF are Nvida, Maxim and Texas Instruments.

Software Holdrs (SWH) is a non diversified ETF that holds just 18 U.S based companies that are in the software market.  This ETF largest holdings are Microsoft, Oracle and Intuit.

Semiconductor Holdrs (SMH) is another non diversified ETF that holds just 20 companies in the semiconductor index. This one of the oldest running ETFs it was founded in May of 2000. The largest holding in this ETF are Intel, Texas Instruments and Applied Materials.

iShares Dow Jones US Technology (IYW) seeks to replicate the performance of the Dow Jones US Technology Index. This ETF has a below average expense ratio of 0.47% compared to the category average of 0.55%. This ETF has a current dividend yield of 0.52%.

First Trust Technology AlphaDex (FXL) seeks investment results that correspond to the price and yield of the StrataQuant(R)Technology Index. This ETF is equal dollar weighted and is comprised mostly of technology stocks picked from the Russell 1000 Index. This is an active and non diversified ETF that is built to beat its index not match it.

This ETF has a higher that average expense ratio of 0.71% compared to its category average of 0.55%. Moreover the largest holdings in this ETF are Fairchild Semi, Vishay Intertechnology and Polycom.

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