{"id":337828,"date":"2020-09-23T13:48:41","date_gmt":"2020-09-23T12:48:41","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=337828"},"modified":"2026-02-23T10:19:26","modified_gmt":"2026-02-23T10:19:26","slug":"technology-etfs","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/exchange-traded-funds-etfs\/technology-etfs","title":{"rendered":"Technology ETFs"},"content":{"rendered":"

Investing in ETFs (exchange-traded funds)<\/a> has proven time and time again to be one of the best strategies for both beginners and experienced investors. With technology stocks booming over the last few decades, investing in technology ETFs has also been a winning strategy for UK investors.<\/p>

It removes the need to pick out the next Microsoft (MSFT)<\/a>, Alphabet (GOOGL)<\/a>, or Apple (AAPL)<\/a> \u2013 because you can invest in funds that automatically hold the winners and drop the losers. But, investing in tech ETFs can add a layer of complexity. So we\u2019re going to look at the mechanics of these popular assets and break down all the moving parts so that you can more easily find the best tech ETFs on the market.<\/p>

What are tech ETFs?<\/h3>

This is a type of ETF investment<\/a> that specialises in technology stocks. Different types of tech ETFs exist, but all will be based on the technology sector (as the name suggests). <\/p>

It\u2019s worth remembering that the term \u201ctechnology\u201d can be used broadly, as many businesses use tech in one way or another. But, for the purpose of investing in tech ETFs, the underlying assets should fall within the 3 main groups that the Global Industry Classification Standard (GICS) uses to categorise tech stocks:<\/p>

  1. Software and services.<\/li>
  2. Technology hardware and equipment.<\/li>
  3. Semiconductors and semiconductor equipment.<\/li><\/ol>

    Best tech ETFs in the UK<\/h3>

    If you want to check out the best-performing technology ETFs, take a look at the options below. Just keep in mind that these aren\u2019t necessarily the best tech ETFs to buy in the UK today. Past performance doesn\u2019t dictate future results. The under-performers may do well over the next few years.<\/p>

    Table: sorted by 5-year performance based on data from JustETF.com. Updated: 5 August 2024<\/div>
    ETF<\/th>Icon<\/th>5-year performance<\/th>YTD performance (to 5 August 2024)<\/th>Link to invest<\/th><\/tr><\/thead>
    Amundi MSCI Semiconductors ESG Screened UCITS ETF Acc (SEMG)<\/th>\"amundi<\/td>197.80%<\/td>31.80%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr>
    Invesco US Technology Sector UCITS ETF (XLKQ)<\/th>\"Invesco<\/td>193.81%<\/td>21.31%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr>
    iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (IITU)<\/th>\"iShares<\/td>184.80%<\/td>19.01%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr>
    Xtrackers MSCI USA Information Technology UCITS ETF 1D (XSTC)<\/th>\"Xtrackers<\/td>166.30%<\/td>15.20%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr>
    Amundi MSCI World Information Technology UCITS ETF USD Acc (TNOW)<\/th>\"amundi<\/td>162.85%<\/td>21.94%<\/td>Invest with InvestEngine<\/a>Capital at risk<\/td><\/tr><\/tbody><\/table>

    All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you\u2019re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.<\/p><\/div><\/article>

    How technology ETFs work<\/h3>

    This category of ETF works exactly the same as any other exchange-traded fund. Each tech ETF will be set up to contain a basket of securities. It may focus on a specific region, or cover a technology niche. By purchasing shares in a technology ETF, a portion of your investment will go to each company held in the fund. These funds are then listed on a stock exchange, allowing investors to buy or sell them.<\/p>

    The exact stocks held in a tech ETF will depend on whether the fund mirrors a particular index, or if there is some kind of active management picking the shares. Most technology ETFs will be \u201cmarket capitalisation<\/a> weighted\u201d. So, the bulk of your investment will go to the biggest holdings (based on market cap).<\/p>

    Here are some examples of the most popular types of technology ETFs that UK investors tend to look at when searching for the best tech investments:<\/p>