9 Best Tech ETFs to Buy Now

The best tech ETFs provide exposure to wide swaths of innovators, or targeted groups of tech stocks harnessing rising trends.

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Technology stocks and tech ETFs have seen renewed interest over the past year or so. 2022 marked a rough stretch for the stock market as investors took a "risk-off" approach to their portfolios. But things seem have since settled down, with many strategies that worked in previous years once again returning to favor. 

Consider that trillion-dollar icon Microsoft (MSFT) is up more than 60% over the past 12 months. Chipmaker Nvidia (NVDA) has been another impressive gainer, more than tripling in value over this same time frame on optimism around its artificial intelligence (AI) initiatives.

This recent outperformance is not a guarantee of future returns, of course. And many on Wall Street believe tech's run higher is on the cusp of running out of steam. 

"While we acknowledge that there are favorable fundamental factors that are underpinning some of these Information-Technology-related names and sectors (that may have the potential to benefit from secular growth trends, strong balance sheets, and healthy profitability), we believe much of the good news is now discounted," says Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. 

The strategist adds that there are several factors that could potentially hold tech stocks back moving forward, including higher-for-longer interest rates, geopolitics and a "sluggish economic outlook."

Still, there's no denying that tech has been the hot-hand for the market and at present, there are no signs that it's slowing down. Investors who want to be a part of the momentum can home in on individual stocks. But a lower-risk approach is with technology exchange-traded funds, whose risk is spread across dozens if not hundreds of stocks.

With that in mind, here are nine of the best tech ETFs to buy now. The names featured here are some of the best ETFs to buy for those looking to participate in the growth of the entire sector, or even smaller industry trends like cybersecurity and AI, while minimizing the risk of single-stock implosions.

Disclaimer

Data is as of February 23. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Jeff Reeves
Contributing Writer, Kiplinger.com

Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.