Equity: U.S. Technology

RYT Top Performer Intra-day
Price $169.74
Today’s Change 0.03%
3:59pm 09/21/2018
PTF Bottom Performer Intra-day
Price $64.53
Today’s Change -1.49%
3:47pm 09/21/2018

ETF.com Insight

With 14 ETFs and over $60.85B 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 31.81%. Meanwhile, the most popular ETF is the Technology Select Sector SPDR Fund (XLK) with $23.26BB 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.

Performance Dispersion

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%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Technology segment is 87 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 823.97M in daily average volume. Investors should also find ample liquidity in the Vanguard Information Technology ETF (VGT), with $93.52M in daily dollar volume.

Use limit orders to trade funds such as the AdvisorShares New Tech and Media ETF(FNG), due to their double-digit market spreads.

ETF.com/ Block Liquidity

XLK
5
4
3
2
1
QTEC
5
4
3
2
1
IYW
5
4
3
2
1
VGT
5
4
3
2
1
FTEC
5
4
3
2
1
FXL
5
4
3
2
1
RYT
5
4
3
2
1
XNTK
5
4
3
2
1
XITK
5
4
3
2
1
PSCT
5
4
3
2
1
PTF
5
4
3
2
1
JHMT
5
4
3
2
1
IETC
5
4
3
2
1
FNG
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

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.

Index Methodology