Equity: U.S. Technology
With 15 ETFs and over $57.70B in combined AUM, the Equity: U.S. Technology segment provides exposure to the U.S. space with a focus on Technology securities.
Year-to-date, the best-performing ETF in the segment is the SPDR FactSet Innovative Technology ETF (XITK), with a total return of 29.81%. Meanwhile, the most popular ETF is the Technology Select Sector SPDR Fund (XLK) with $22.12BB in assets under management.
Investors should take a look at the Vanguard Information Technology ETF (VGT). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard Information Technology ETF tracks a market-cap-weighted index of technology companies, drawing its securities from the top 98% of US market capitalization. VGT has an expense ratio of 0.10% and tracks the MSCI US Investable Market Information Technology 25/50 Transition Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. Technology segment is 91 out of 100, with the Fidelity MSCI Information Technology Index ETF(FTEC) obtaining the highest rating of 100 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.40% per year, with the Fidelity MSCI Information Technology Index ETF (FTEC) having the lowest expense ratio, charging investors 0.08% yearly.
Investors should look for funds with tight tracking, such as the Vanguard Information Technology ETF (VGT), with a 12-month median tracking difference of -0.13%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Technology segment is 90 out of 100, with the Technology Select Sector SPDR Fund(XLK) obtaining the highest rating of 100 out of 100.
The Technology Select Sector SPDR Fund (XLK) is the undisputed segment leader when it comes to liquidity. The fund trades 866.88M in daily average volume. Investors should also find ample liquidity in the Vanguard Information Technology ETF (VGT), with $91.46M in daily dollar volume.
Use limit orders to trade funds such as the iShares Edge MSCI Multifactor Technology ETF(TCHF), due to their double-digit market spreads.
ETF.com Fit Insight
The Thomson Reuters US 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 FTEC. 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, PSCT follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.