Best Tech ETFs to Buy Now
Written by
Aja McClanahan
Edited by
Joe Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Looking to invest in the booming tech sector but don’t want to bet on just one company? Tech ETFs make it easy to diversify across top players in the industry — without the stress of picking individual stocks.
In 2025, with AI advancements, cloud computing and cybersecurity growth in full swing, the best tech ETFs can help you capture big opportunities in the market.
This guide breaks down the best tech ETFs to buy now, why they stand out and how to get started, even if you’re new to investing.
Best Tech ETFs to Buy in 2025
Here’s a quick snapshot of top-performing and popular tech ETFs this year:
| ETF Name | Ticker | Expense Ratio | 1-Year Return | Key Strength |
|---|---|---|---|---|
| Invesco QQQ Trust | QQQ | 0.2% | +18.5% | Tracks the Nasdaq-100, heavy on big tech |
| Technology Select Sector SPDR | XLK | 0.1% | +17.2% | Focuses on S&P 500 tech giants |
| iShares U.S. Technology ETF | IYW | 0.39% | +16.8% | Broad exposure to U.S. tech stocks |
| Vanguard Information Tech ETF | VGT | 0.1% | +17.4% | Low-cost, diversified U.S. tech exposure |
| Global X Robotics & AI ETF | BOTZ | 0.69% | +22.1% | AI and robotics-focused companies |
| First Trust Cloud Computing ETF | SKYY | 0.6% | +14.3% | Specializes in cloud infrastructure |
These ETFs give you a slice of the tech sector’s potential, from cloud computing to artificial intelligence.
Why Invest in Tech ETFs?
Tech stocks have powered market growth for years and with trends like AI, semiconductors and cybersecurity heating up, many investors see tech ETFs as a smart way to tap into long-term innovation.
Here’s why tech ETFs might be a good fit:
- Diversification: Spread your investment across dozens (or even hundreds) of tech companies.
- Cost-Effective: Lower fees than mutual funds, with no need to buy pricey individual stocks.
- Exposure to Big Trends: Get in on AI, the cloud and more without having to pick winners.
- Less Risk Than Individual Stocks: Even if one company struggles, others in the fund can balance it out.
Just remember: tech stocks can be volatile. They tend to outperform during growth markets but may drop sharply during downturns.
Tech ETFs vs. Other Investment Options
Here’s how tech ETFs compare with other ways to invest in technology:
| Investment Type | Risk Level | Growth Potential | Volatility | Income Yield |
|---|---|---|---|---|
| Tech ETFs | Medium-High | High | High | Low (dividends may vary) |
| Individual Tech Stocks | High | High-Varied | Very High | Varies by stock |
| Broad Market ETFs | Medium | Medium-High | Medium | Moderate |
| Sector ETFs (Other) | Medium | Varies | Varies | Varies |
Risks of Investing in Tech ETFs
Before you buy, keep these key risks in mind:
- Market Volatility: Tech stocks are known for big price swings.
- Concentration Risk: Some ETFs may be heavily weighted toward a few large companies like Apple or Microsoft.
- Regulatory Shifts: New laws, like antitrust regulations, can impact tech companies.
- Global Economic Factors: Tech relies on global supply chains and can be sensitive to trade issues.
Trends Shaping Tech ETFs in 2025
What’s driving the growth of tech ETFs right now?
- AI and Machine Learning: ETFs like BOTZ and QQQ benefit from the AI boom.
- Cloud Computing: SKYY focuses on this rapidly growing sector.
- Cybersecurity Growth: With cyber threats rising, funds with security-focused stocks are gaining attention.
- Semiconductor Demand: Chip makers are vital to everything from AI to electric vehicles.
Keeping an eye on these trends can help you choose the right ETF for your portfolio.
How to Buy Tech ETFs
Getting started with tech ETFs is simple. Here’s a quick step-by-step:
- Open a Brokerage Account: Popular platforms include Fidelity, Schwab and Robinhood.
- Search by Ticker Symbol: For example, type in “QQQ” or “VGT.”
- Review the ETF’s Data: Check fees, holdings, and past performance.
- Decide How Much to Invest: Start small and consider dollar-cost averaging.
- Invest and Monitor: Add funds over time, and rebalance as needed.
Final Take to GO: Are Tech ETFs a Good Investment for You?
If you believe in the future of technology and want exposure to big names and emerging trends, the best tech ETFs can be a smart addition to your portfolio. They offer diversification, growth potential and a simple way to invest in innovation — all without the hassle of picking individual stocks.
Ready to start? Compare your options, pick an ETF that matches your risk tolerance and invest with confidence.
For more investing tips, check out our guide on How to Buy ETFs and Best ETFs for Beginners.
FAQs About Tech ETFs
Learn more about the best tech ETFs so you can make an informed decision about whether or not to include them in your portfolio.- What is a tech ETF?
- A tech ETF is a fund that invests in a basket of technology stocks, offering exposure to the entire sector with a single purchase.
- Are tech ETFs good for beginners?
- Yes! They’re a great way for new investors to tap into tech trends without the risk of picking individual stocks.
- Do tech ETFs pay dividends?
- Some do, but many tech companies reinvest profits into growth rather than paying high dividends. Check each ETF’s yield before buying.
- Can I lose money with tech ETFs?
- Yes, like any investment, tech ETFs carry risk. Their value can fluctuate based on market conditions.
Data is accurate as of May 27, 2025, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Investor.gov "Exchange-Traded Funds (ETFs)"
- U.S. Department of Homeland Security "Feature Article: Leveraging AI to Enhance the Nation’s Cybersecurity"
- Investco "Five risks to know when investing in ETFs"
- Federal Trade Commission "The Antitrust Laws"
- White House Archive "AI"
