Equity: Global Technology
With 12 ETFs and over $9.04B in combined AUM, the Equity: Global Technology segment provides exposure to the space with a focus on Technology securities.
Year-to-date, the best-performing ETF in the segment is the ETFMG Prime Cyber Security ETF (HACK), with a total return of 15.74%. Meanwhile, the most popular ETF is the iShares Exponential Technologies ETF (XT) with $2.23BB in assets under management.
Investors should take a look at the iShares Global Tech ETF (IXN). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The iShares Global Tech ETF tracks a market-cap-weighted index of S&P Global 1200 technology stocks. IXN has an expense ratio of 0.48% and tracks the S&P Global 1200 Information Technology Sector Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: Global Technology segment is 87 out of 100, with the iShares Global Tech ETF(IXN) obtaining the highest rating of 91 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.61% per year, with the iShares Exponential Technologies ETF (XT) having the lowest expense ratio, charging investors 0.47% yearly.
Investors should look for funds with tight tracking, such as the iShares Global Tech ETF (IXN), with a 12-month median tracking difference of -0.09%.
ETF.com Tradability Insight
The average tradability score in the Equity: Global Technology segment is 92 out of 100, with the First Trust Cloud Computing ETF(SKYY) obtaining the highest rating of 97 out of 100.
The First Trust Cloud Computing ETF (SKYY) is the undisputed segment leader when it comes to liquidity. The fund trades 19.73M in daily average volume. Investors should also find ample liquidity in the ETFMG Prime Cyber Security ETF (HACK), with $12.51M in daily dollar volume.
Use limit orders to trade funds such as the 3D Printing ETF(PRNT), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters Global Technology has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to IXN. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, HACK follows a Equal strategy and obtains a low Fit score compared with our neutral benchmark.