Equity: Global Technology
With 21 ETFs and over $12.64B 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 Global X Cloud Computing ETF (CLOU), with a total return of 9.25%. Meanwhile, the most popular ETF is the iShares Global Tech ETF (IXN) with $3.42BB 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. IXN tracks a market-cap-weighted index of S&P Global 1200 technology stocks. IXN has an expense ratio of 0.46% 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 83 out of 100, with the First Trust NASDAQ Technology Dividend Index Fund(TDIV) obtaining the highest rating of 90 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.58% per year, with the Tortoise Digital Payments Infrastructure Fund (TPAY) having the lowest expense ratio, charging investors 0.40% yearly.
Investors should look for funds with tight tracking, such as the First Trust NASDAQ Cybersecurity ETF (CIBR), with a 12-month median tracking difference of -0.54%.
ETF.com Tradability Insight
The average tradability score in the Equity: Global Technology segment is 72 out of 100, with the First Trust NASDAQ Technology Dividend Index Fund(TDIV) obtaining the highest rating of 98 out of 100.
The iShares Global Tech ETF (IXN) is the undisputed segment leader when it comes to liquidity. The fund trades 16.47M in daily average volume. Investors should also find ample liquidity in the ETFMG Prime Cyber Security ETF (HACK), with $8.49M in daily dollar volume.
Use limit orders to trade funds such as the Tortoise Digital Payments Infrastructure Fund(TPAY), 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, ARKQ follows a Active strategy and obtains a low Fit score compared with our neutral benchmark.