Chipmakers Bounce Back
Excluding inverse/leveraged products, the top tech fund of the year is the iShares PHLX Semiconductor ETF (SOXX), with a gain of 35.4%.
Shares of chipmakers like Qualcomm and Nvidia moved sharply higher in 2019, recovering from a dismal fourth quarter, as fears about the global economy abated. In addition to SOXX, the First Trust Nasdaq Semiconductor ETF (FTXL), the SPDR S&P Semiconductor ETF (XSD) and the VanEck Vectors Semiconductor ETF (SMH) have also outperformed this year.
Going further down the list are a handful of China tech ETFs, with returns of as much as 33.4%. Separate from the U.S. tech sector, Chinese tech stocks have nonetheless been a hot place to be. The Global X MSCI China Information Technology ETF (CHIK) exposes investors to these stocks—including Lenovo, Sunny Optical and Xiaomi—which were hammered last year due to trade war concerns, but have since bounced back.
Software ETFs On A Roll
Along with semiconductors, another area of tech that’s been rolling this year is software. From MongoDB to Twilio to Adobe, software stocks—especially those tied to the cloud—have been on a tear.
Software stocks also make up a big chunk of the Invesco DWA Technology Momentum ETF (PTF), which selects tech stocks to hold based on price momentum.
Atypical Tech ETF
Another fund worth mentioning in the O’Shares Global Internet Giants ETF (OGIG). The fund, which is less than a year old, outperformed this year thanks to heavy positions in FAANG stocks like Facebook, Amazon, Alphabet and Netflix.
(Use our stock finder tool to find an ETF’s allocation to a certain stock.)
None of those companies are in the technology sector as defined by GICS, but many investors still consider them tech stocks. OGIG is up 31.8% so far this year.
Top-Performing Technology ETFs (leveraged)
|Ticker||Fund||YTD Return (%)|
|SOXL||Direxion Daily Semiconductor Bull 3X Shares||127.89|
|TECL||Direxion Daily Technology Bull 3X Shares||90.95|
|CWEB||Direxion Daily CSI China Internet Index Bull 2X Shares||62.55|
|USD||ProShares Ultra Semiconductors||61.82|
|ROM||ProShares Ultra Technology||56.44|