What are broad technology ETFs?
Technology ETFs own companies that design chips, build chipmaking equipment, and make computers, phones and software. The same names turn up again and again. Among the 15 largest funds, Advanced Micro Devices is held by 12; Micron, Intel, Applied Materials and Lam Research by 11 each; and Nvidia, Microsoft and Broadcom by 10. Apple appears in only 8, but in the funds that hold it, its median weight is 11.36%. In VGT, the largest fund, Nvidia is 17.77% of assets, Apple 15.83% and Microsoft 11.32%.
Most of these funds track an index and weight stocks by company size, so the giants dominate. VGT, XLK, IYW and FTEC are the biggest examples. IGM adds some communication services and consumer discretionary stocks. IXN goes global, with Taiwan Semiconductor Manufacturing among its top five holdings. CQQQ holds Chinese firms such as Meituan, PDD Holdings and Tencent. Other funds change the mix: RSPT gives each S&P 500 tech stock an equal weight, FXL keeps just 18.09% in its top 10, and TDIV follows a tech dividend index. JTEK names no index and aims for long-term capital appreciation, meaning growth in share price. Four funds are leveraged or inverse. TECL (3x) and ROM (2x) aim to multiply each day's move, while TECS (-3x) and REW (-2x) aim to move the opposite way.
Costs vary widely. The expense ratio is the yearly fee, charged as a share of your investment. It ranges from 0.08% for XLK to 1.01% for the most expensive fund, with a median of 0.59%. FTEC (0.084%) and VGT (0.09%) cost almost as little as XLK, while IYW, IGM and IXN each charge 0.37%.
The money is concentrated too. Of the roughly $397 billion in the 39 funds, 87.9% sits in five of them: VGT, XLK, IYW, FTEC and IGM.
Broad technology ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest broad technology ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Advanced Micro Devices Inc | 12 of 15 | 3.06% |
| Micron Technology Inc | 11 of 15 | 3.82% |
| Intel Corp | 11 of 15 | 2.35% |
| Applied Materials Inc | 11 of 15 | 2.1% |
| Lam Research Corp | 11 of 15 | 1.93% |
| NVIDIA Corp | 10 of 15 | 9.54% |
| Microsoft Corp | 10 of 15 | 7.41% |
| Broadcom Inc | 10 of 15 | 4.2% |
| Cisco Systems Inc | 9 of 15 | 2.02% |
| Palo Alto Networks Inc | 9 of 15 | 1.4% |
| Apple Inc | 8 of 15 | 11.36% |
| Texas Instruments Inc | 8 of 15 | 1.2% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad technology ETFs, side by side
Swipe the table to see all 5 funds.
| VGT | XLK | IYW | FTEC | IGM | |
|---|---|---|---|---|---|
| Net assets | $170.66B | $123.91B | $23.58B | $19.85B | $10.71B |
| Expense ratio | 0.09% | 0.08% | 0.37% | 0.08% | 0.37% |
| Holdings | 318 | 74 | 149 | 281 | 295 |
| In the 10 largest | 62.5% | 64.45% | 65.26% | 62.24% | 55.57% |
| Biggest holding | NVIDIA Corp (17.77%) | NVIDIA Corp (14.65%) | Nvidia Corporation (13.65%) | NVIDIA Corp (17.09%) | NVIDIA Corp. (7.96%) |
| Yield | 0.96% | 0.47% | 0.11% | 0.41% | 0.14% |
| 1-year return | +19.7% | +20.1% | +13.9% | +15.4% | +21.3% |
| 3 years, a year | +33.3% | +4.0% | +30.4% | +30.0% | +38.6% |
| 5 years, a year | +17.5% | +3.0% | +16.7% | +16.8% | +18.4% |
| Worst drop, past year | -15.2% | -15.9% | -17.8% | -16.3% | -16.4% |
| Launched | 2004 | 1998 | 2000 | 2013 | 2001 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Nov 2, 2026.
Head to head
VGT vs XLK
The two largest tech ETFs are close cousins. They share 73 holdings, and 77.9% of their assets overlap. VGT holds 318 stocks to XLK's 74, but both are top-heavy, with 62.5% and 64.45% in their top 10. Nvidia is the biggest position in each, at 17.77% and 14.65%. Fees are 0.09% and 0.08%, and VGT's yield was 0.92% to XLK's 0.45%. Over the year to October 29, 2026, XLK returned 24.8% and VGT 23.4%. Their worst drops were nearly identical, at 15.9% and 15.8%. Both may suit investors who want low-cost tech funds weighted by company size.
VGT vs FTEC
These two are almost the same fund. They share 275 holdings, and 95.5% of their assets overlap, the most of any pair among the five largest tech ETFs. FTEC tracks the MSCI USA IMI Information Technology 25/50 Index with 281 stocks, while VGT holds 318. Each puts about 62% in its top 10, led by Nvidia at 17.77% in VGT and 17.09% in FTEC. VGT charges 0.09% and FTEC 0.084%. Over the year to October 29, 2026, VGT returned 23.4% and FTEC 22.7%, with worst drops of 15.8% and 16.3%. Either may suit cost-focused investors, but owning both adds little diversification.
VGT vs IGM
IGM casts a wider net. It adds selected North American communication services and consumer discretionary stocks to the tech sector. That gives it the lowest overlap of any pair among the five largest funds: 69.8% of assets, across 262 shared holdings. IGM is less top-heavy, with 55.57% in its top 10 and Nvidia at 7.96%, against 62.5% and 17.77% for VGT. IGM costs 0.37% and VGT 0.09%. Over the year to October 29, 2026, VGT returned 23.4% and IGM 21.3%, with worst drops of 15.8% and 16.4%. IGM may suit those who want broader tech, and VGT those who want a purer sector fund.
How much do the largest broad technology ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VGT and FTEC | 95.5% | 275 | |
| XLK and FTEC | 78.8% | 74 | |
| VGT and XLK | 77.9% | 73 | |
| IYW and IGM | 77.7% | 129 | |
| IYW and FTEC | 77.6% | 123 | |
| VGT and IYW | 77% | 123 | |
| XLK and IGM | 75.8% | 74 | |
| XLK and IYW | 75.4% | 59 | |
| FTEC and IGM | 71% | 257 | |
| VGT and IGM | 69.8% | 262 |
From each fund’s full holdings in its latest N-PORT report.
How have broad technology ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad technology ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | RSPT Invesco S&P 500 Equal Weight Technology ETF | $5.47B | 0.4% | -0.3% | +45.7% | +42.6% | +36.6% |
| 2 | PSCT Invesco S&P SmallCap Information Technology ETF | $484.0M | 0.29% | -0.4% | +41.9% | +38.5% | +27.2% |
| 3 | PTF Invesco Dorsey Wright Technology Momentum ETF | $582.5M | 0.6% | -1.1% | +41.7% | +32.5% | +38.7% |
| 4 | SPTE SP Funds S&P Global Technology ETF | $211.3M | 0.55% | -4.8% | +36.0% | +32.3% | — |
| 5 | GTEK Goldman Sachs Future Tech Leaders Equity ETF | $238.0M | 0.75% | -9.2% | +35.3% | +31.2% | +35.3% |
| 6 | IXN iShares Global Tech ETF | $9.46B | 0.37% | -4.9% | +35.1% | +30.4% | +36.5% |
| 7 | FXL First Trust Technology AlphaDEX Fund | $2.57B | 0.6% | +1.4% | +33.8% | +27.7% | +29.5% |
| 8 | QTEC First Trust NASDAQ-100 Technology Sector Index Fu… | $4.99B | 0.55% | -6.1% | +35.0% | +27.5% | +30.9% |
| 9 | TECB iShares U.S. Tech Breakthrough Multisector ETF | $462.2M | 0.3% | -0.9% | +29.6% | +23.7% | +31.7% |
| 10 | XNTK SPDR NYSE Technology ETF | $2.35B | 0.35% | -6.1% | +29.6% | +23.1% | +40.6% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad technology ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| VGT | not yet launched | not yet launched | -34.5% |
| XLK | -51.8% | -31.2% | -33.1% |
| IYW | -52.2% | -30.5% | -37.5% |
| FTEC | not yet launched | -31.9% | -34.3% |
| IGM | -52.9% | -29.9% | -38.5% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad technology ETFs?
Technology companies make money when businesses and households spend on chips, computers, phones, software and cloud services. That spending rises and falls with the economy. Chip-related stocks such as Micron, Applied Materials and Lam Research are each held by 11 of the 15 largest funds. These stocks tend to go through boom-and-bust cycles as customers stock up on parts and then cut back. Interest rates matter too. Investors often pay high prices for tech shares because of profits they expect years from now. Higher rates lower the value placed on those distant profits, so share prices can fall even when sales hold up.
Past downturns show this pattern. In the 2008 financial crisis, XLK fell 51.8%, IYW 52.2% and IGM 52.9%, a little less than the S&P 500's 55.2%. In the 2020 COVID crash, XLK, IYW, FTEC and IGM fell between 29.9% and 31.9%, again slightly less than the S&P 500's 33.7%. The 2022 bear market, when interest rates rose quickly, was different. VGT fell 34.5%, XLK 33.1%, FTEC 34.3%, IYW 37.5% and IGM 38.5%, all well beyond the S&P 500's 24.5% drop.
Broad technology ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLK Technology Select Sector SPDR Fund | 0.08% | $8 a year | $123.91B |
| 2 | FTEC Fidelity MSCI Information Technology Index ETF | 0.08% | $8 a year | $19.85B |
| 3 | VGT Vanguard Information Technology ETF | 0.09% | $9 a year | $170.66B |
| 4 | IETC iShares U.S. Tech Independence Focused ETF | 0.18% | $18 a year | $668.3M |
| 5 | PSCT Invesco S&P SmallCap Information Technology E… | 0.29% | $29 a year | $484.0M |
Ordinary funds with at least $10 million in net assets. The median ordinary broad technology ETF charges 0.55% a year; leveraged and inverse funds usually charge more.
Do broad technology ETFs pay dividends?
29 of the 35 ordinary broad technology ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.78%.
| Highest yields | Yield | Net assets |
|---|---|---|
| KQQQ Kurv Technology Titans Select ETF | 16.08% | $126.5M |
| TDVI FT Vest Technology Dividend Target Income ETF | 8.09% | $524.0M |
| KEMQ KraneShares Emerging Markets Consumer Technol… | 5.63% | $38.5M |
| KTEC KraneShares Hang Seng TECH Index ETF | 4.89% | $49.9M |
| SEMI Columbia Select Technology ETF | 3.63% | $37.6M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets. Some of these yields come from selling options, which gives up some of the gains.
How to choose a broad technology ETF
- Annual fees range widely. XLK (0.08%), FTEC (0.084%) and VGT (0.09%) charge the least. IYW, IGM and IXN charge 0.37%, and the median tech ETF charges 0.59%. Over decades, even small differences in fees add up.
- How top-heavy each fund is. IYW, XLK, VGT and FTEC each put more than 62% in their 10 largest stocks. RSPT (16.36%) and FXL (18.09%) spread money far more evenly, so a few giants drive much less of their returns.
- How stocks are picked and weighted. Most funds weight stocks by company size. RSPT gives each S&P 500 tech stock an equal weight, and TDIV follows a tech dividend index. JTEK aims for long-term capital appreciation without following an index.
- Where the companies are based. IYW and FTEC track US indexes. IGM covers North America, and IXN holds global stocks including Taiwan Semiconductor Manufacturing. CQQQ owns Chinese firms such as Meituan and Tencent and lost 30.4% over the year to October 29, 2026.
- Fund size and trading costs. VGT and XLK each hold more than $120 billion, and the five largest funds hold 87.9% of the group's assets. Very small funds, such as REW at about $3.5 million, can cost more to trade.
- Leveraged and inverse funds are different tools. TECL (3x) and ROM (2x) aim to multiply each day's move. TECS (-3x) and REW (-2x) aim for the reverse. They reset daily, so long-term results can stray far from the multiple. TECL charges 0.87% and ROM 0.93%.
What are the risks of broad technology ETFs?
- A few giant stocks drive results. In VGT, Nvidia (17.77%), Apple (15.83%) and Microsoft (11.32%) make up a large share of the fund. The four largest funds keep more than 62% in their top 10. A bad stretch for one or two companies hits hard.
- Big swings even in strong years. As of October 29, 2026, VGT had gained 23.4% over one year but fell 15.8% from a peak along the way. Its volatility, a measure of how widely prices swing, was 25%. JTEK dropped as much as 22%.
- Sensitive to rising interest rates. Tech share prices depend on profits expected far in the future, which are worth less when interest rates rise. In the 2022 bear market, IGM fell 38.5% and IYW 37.5%, against 24.5% for the S&P 500.
- Leveraged and inverse funds can erode. TECL had 79.7% volatility and fell 46.6% at its worst in the year to October 29, 2026. Because these funds reset daily, choppy markets eat into returns. Inverse TECS lost 63.7% over that year.
- China tech carries separate risks. CQQQ lost 30.4% over the year to October 29, 2026. KTEC, which tracks Hong Kong's Hang Seng TECH Index, lost 39%. Chinese firms such as Tencent and Meituan face their own economic and regulatory pressures.
Leveraged and inverse broad technology ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad technology ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | VGT Vanguard Information Technology ETF | $170.66B† | 0.09% | 0.96% | +25.5% | +19.7% | +17.5% |
| 2 | XLK Technology Select Sector SPDR Fund | $123.91B | 0.08% | 0.47% | +25.1% | +20.1% | +3.0% |
| 3 | IYW iShares U.S. Technology ETF | $23.58B | 0.37% | 0.11% | +18.5% | +13.9% | +16.7% |
| 4 | FTEC Fidelity MSCI Information Technology Index ETF | $19.85B | 0.08% | 0.41% | +21.3% | +15.4% | +16.8% |
| 5 | IGM iShares Expanded Tech Sector ETF | $10.71B | 0.37% | 0.14% | +25.5% | +21.3% | +18.4% |
| 6 | IXN iShares Global Tech ETF | $9.46B | 0.37% | 0.78% | +35.1% | +30.4% | +19.6% |
| 7 | RSPT Invesco S&P 500 Equal Weight Technology ETF | $5.47B | 0.4% | 0.23% | +45.7% | +42.6% | — |
| 8 | TECL Direxion Daily Technology Bull 3X Shares Leveraged | $5.10B | 0.87% | 4.16% | +75.6% | +50.6% | +26.8% |
| 9 | QTEC First Trust NASDAQ-100 Technology Sector Index Fu… | $4.99B | 0.55% | 0.01% | +35.0% | +27.5% | +13.4% |
| 10 | JTEK JPMorgan U.S. Tech Leaders ETF | $4.63B | 0.65% | — | +12.3% | +5.0% | — |
Questions investors ask about broad technology ETFs
What is the largest technology ETF?
Vanguard Information Technology ETF (VGT) is the largest, with about $171 billion in net assets. Technology Select Sector SPDR Fund (XLK) is next at about $124 billion. After them come iShares U.S. Technology ETF (IYW), Fidelity MSCI Information Technology Index ETF (FTEC) and iShares Expanded Tech Sector ETF (IGM). Together those five hold 87.9% of the roughly $397 billion in the 39 US-listed tech ETFs in this guide.
Which technology ETF has the lowest expense ratio?
XLK has the lowest, at 0.08% a year. FTEC (0.084%) and VGT (0.09%) are close behind. Next come iShares U.S. Tech Independence Focused ETF (IETC) at 0.18% and Invesco S&P SmallCap Information Technology ETF (PSCT) at 0.29%. The median tech ETF charges 0.59%, and the most expensive charges 1.01%, so fees vary widely across the group.
VGT vs XLK: what's the difference?
The main difference is how many stocks they hold. VGT holds 318 and XLK 74, though they share 73 holdings and 77.9% of their assets overlap. Both are top-heavy, with Nvidia the largest position (17.77% of VGT, 14.65% of XLK). XLK costs 0.08% a year and VGT 0.09%. Over the year to October 29, 2026, XLK returned 24.8% and VGT 23.4%. VGT's yield was 0.92% and XLK's 0.45%.
Do technology ETFs pay dividends?
Most do, but the payouts are small. Of 35 tech ETFs counted, 29 pay dividends, and the median yield is 0.78%. VGT's yield was 0.92%, XLK's 0.45% and IYW's 0.1%. TDIV tracks the Nasdaq Technology Dividend Index, with International Business Machines, Broadcom and Microsoft among its largest holdings. A few smaller funds show much higher yields, such as KQQQ at 16.08% and TDVI at 8.09%. Yields that high come from strategies unlike a plain tech index fund, so the details are worth reading.
Do tech ETFs own Nvidia?
Yes, and most of the big ones own a lot of it. Nvidia is the largest holding in VGT (17.77%), FTEC (17.09%), XLK (14.65%), IYW (13.65%), IXN (12.96%) and IGM (7.96%). It appears in 10 of the 15 largest tech ETFs, with a median weight of 9.54%. Apple and Microsoft are usually the next biggest positions. RSPT and FXL spread their money more evenly, with only 16.36% and 18.09% in their top 10 holdings.
How many technology ETFs are there?
This guide covers 39 US-listed broad technology ETFs. Four are leveraged or inverse: TECL, ROM, TECS and REW. The rest range from giant index funds such as VGT and XLK to narrower funds. CQQQ holds Chinese tech companies, TDIV follows a dividend index, and JTEK names no index in its objective. Most of the money sits in a few funds: the five largest hold 87.9% of assets.
What are leveraged tech ETFs like TECL?
They are short-term trading tools. TECL aims for 3x the daily performance of its tech index. ROM aims for 2x the daily performance of the S&P Technology Select Sector Index. TECS (-3x) and REW (-2x) aim to move the opposite way. TECL's objective says it does not seek its target over any period other than a single trading day, so results over longer periods can stray far from the multiple. Over the year to October 29, 2026, TECL gained 50.6% but fell 46.6% at its worst, and TECS lost 63.7%.
Are tech ETFs riskier than the S&P 500?
They can fall harder. In the 2022 bear market, VGT fell 34.5%, IYW 37.5% and IGM 38.5%, while the S&P 500 fell 24.5%. In the 2008 financial crisis and the 2020 COVID crash, XLK, IYW and IGM fell slightly less than the S&P 500. Tech funds hold one sector and depend heavily on a few giant companies, so their results can differ sharply from the broad market's in either direction.
Is there a Vanguard, Fidelity or Schwab technology ETF?
Yes. Vanguard offers one: VGT (Vanguard Information Technology ETF). Fidelity offers one: FTEC (Fidelity MSCI Information Technology Index ETF). Schwab doesn’t have a technology ETF.
