Equity: U.S. Technology
With 18 ETFs and over $64.27B in combined AUM, the Equity: U.S. 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 WisdomTree Cloud Computing Fund (WCLD), with a total return of -6.11%. Meanwhile, the most popular ETF is the Technology Select Sector SPDR Fund (XLK) with $24.16BB in assets under management.
Investors should take a look at the iShares Expanded Tech Sector ETF (IGM). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. IGM tracks a market-cap-weighted index of US and Canadian technology companies. IGM has an expense ratio of 0.46% and tracks the S&P North American Expanded Technology Sector Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. Technology segment is 88 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 0.43% 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 John Hancock Multifactor Technology ETF (JHMT), with a 12-month median tracking difference of -0.04%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. Technology segment is 94 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 2.10B in daily average volume. Investors should also find ample liquidity in the Vanguard Information Technology ETF (VGT), with $320.58M in daily dollar volume.
Use limit orders to trade funds such as the HCM Defender 100 Index ETF(QQH), 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 IETC. 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, WCLD follows a Equal strategy and obtains a low Fit score compared with our neutral benchmark.