Best Technology ETFs (2026)
Which technology sector fund to hold — 17 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- largest and most liquid at $169.2B
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 17 funds, not across the whole market.
All 17 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 SMHVanEck Semiconductor ETF | Technology | 0.35% | 0.17% | +103.9% | +266.4% | 37.2% | -35.7% | 2.66 | $77.2B | 77.5 | B+ |
| 2 XLKState Street Technology Select Sector SPDR ETF | Technology | 0.08% | 0.62% | +35.9% | +101.2% | 24.8% | -25.7% | 1.25 | $123.9B | 76.7 | B+ |
| 3 VGTVanguard Information Technology Index Fund ETF Shares | Technology | 0.09% | 0.36% | +35.2% | +105.7% | 23.6% | -27.2% | 1.28 | $169.2B | 76.4 | B+ |
| 4 SOXXiShares Semiconductor ETF | Technology | 0.34% | 0.57% | +127.4% | +216.5% | 42.7% | -41.4% | 2.86 | $47.8B | 76.4 | B+ |
| 5 FTECFidelity MSCI Information Technology Index ETF | Technology | 0.08% | 0.35% | +35.8% | +107.9% | 23.6% | -27.3% | 1.30 | $21.0B | 74.2 | B |
| 6 SOXQInvesco PHLX Semiconductor ETF | Technology | 0.19% | 0.25% | +119.9% | +226.4% | 41.9% | -39.4% | 2.74 | $2.8B | 73.5 | B |
| 7 IYWiShares U.S. Technology ETF | Technology | 0.38% | 0.01% | +34.6% | +112.4% | 23.3% | -26.5% | 1.27 | $25.4B | 71.4 | B |
| 8 XSDState Street SPDR S&P Semiconductor ETF | Technology | 0.35% | 0.08% | +95.9% | +132.8% | 43.9% | -41.2% | 2.07 | $3.5B | 71.0 | B |
| 9 IGMiShares Expanded Tech Sector ETF | Technology | 0.39% | 0.13% | +35.4% | +127.1% | 23.8% | -26.4% | 1.28 | $10.7B | 70.5 | B |
| 10 PSIInvesco Semiconductors ETF | Technology | 0.56% | 0.12% | +151.5% | +222.2% | 47.2% | -41.1% | 3.10 | $3.1B | 69.8 | B |
| 11 CIBRFirst Trust NASDAQ Cybersecurity ETF | Technology | 0.58% | 0.44% | +19.4% | +90.3% | 25.9% | -22.0% | 0.56 | $13.8B | 58.3 | C |
| 12 HACKAmplify Cybersecurity ETF | Technology | 0.60% | 0.06% | +21.8% | +101.6% | 27.2% | -21.9% | 0.62 | $2.6B | 56.8 | C |
| 13 SKYYFirst Trust Cloud Computing ETF | Technology | 0.60% | — | +5.6% | +63.8% | 28.9% | -31.8% | 0.02 | $2.7B | 43.0 | D |
| 14 FDNFirst Trust Dow Jones Internet Index Fund | Technology | 0.49% | — | -4.1% | +50.3% | 20.1% | -25.0% | -0.45 | $5.0B | 40.5 | D |
| 15 BUGGlobal X Cybersecurity ETF | Technology | 0.50% | 0.03% | +4.7% | +49.6% | 32.8% | -37.7% | -0.01 | $1.2B | 39.3 | D |
| 16 IGViShares Expanded Tech-Software Sector ETF | Technology | 0.39% | 0.02% | -21.4% | +21.2% | 28.9% | -36.6% | -0.92 | $13.5B | 34.9 | F |
| 17 XSWState Street SPDR S&P Software & Services ETF | Technology | 0.35% | 0.01% | -13.9% | +19.5% | 29.4% | -33.8% | -0.64 | $402M | 30.4 | F |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
Technology funds are highly concentrated — the top few holdings often make up a third or more of the fund — so they carry meaningful single-company risk despite holding dozens of names. Note also how much tech exposure your core index fund already gives you.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best technology ETF?
SMH ranks highest of the 17 technology funds tracked, scoring 77.5 (B+). XLK is the cheapest at 0.08%.
Do I already own tech through my index fund?
Almost certainly, and more than you might expect — technology is the largest sector in the S&P 500 by a wide margin. A dedicated tech fund concentrates an exposure you already have rather than adding a new one.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.