The Different Flavors Of Surging Tech ETFs

April 25, 2017

RYT: A smart-beta equal-weighted ETF

The Guggenheim S&P 500 Equal Weight Technology ETF (RYT) is another equal-weighted approach to tech companies, but one that picks stocks solely from the S&P 500. The fund is hugely popular, boasting more than $1.2 billion in assets and enough liquidity to keep average spreads at around 0.05%.

Launched in 2006, RYT has an expense ratio of 0.40%, and owns about 58 stocks.

JHMT: A smart-beta multifactor tech ETF

The John Hancock Multifactor Technology ETF (JHMT) picks stocks by market capitalization, but weights them based on a multifactor methodology that looks at things like relative price, profitability and momentum in an effort to allocate most heavily toward companies that look to offer attractive relative value, high profitability and strong momentum.

The approach translates into a midcap bias, and some different segment tilts within tech toward software and semiconductors. The fund, which has 116 holdings, has only $41 million in assets, but it’s still relatively new, having come to market in 2015.

JHMT carries a 0.50% expense ratio.

The Universe

These five ETFs offer just a glimpse into the many choices ETF investors have in the technology sector. There are 62 tech ETFs on the market today, about half of which are U.S.-focused. Each fund offers its own take on the tech sector—a sector that continues to rank among the U.S. market’s best performers.

Contact Cinthia Murphy at [email protected]

 

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