Some of them offer investors diversified exposure, focusing on the technology sector. This article will look at some Canadian ETFs that can give you access to all the popular technologies in North America with just one click.
With companies such as Shopify Inc., Constellation Software Inc. and CGI as the top three assets, the ETF offers investors access to some of Canada’s top-performing tech stocks right now. This is the best technology ETF in Canada if you want to invest in a group of Canadian technology companies without any impact on other asset classes. This is by far the best Canadian tech ETF you can buy today if you want access to top Canadian tech companies.
As the name suggests, this is not a pure technology ETF, but somewhat after the top 100 (currently, 103, to be exact) NASDAQ companies with a distribution return of 0.78% and an attractive dividend yield of 1.28%. You should consider this ETF if you want to access the NASDAQ 100 Index at a fraction of the cost. Its primary focus is on the capital appreciation and provides a cost-effective way to invest in the largest technology companies in the US. Seek capital appreciation by investing in US semiconductor stocks.
Seeks to replicate the technology sector of the S&P 500 by investing in technology equipment, storage and peripherals, software and communications. This ETF tracks an index of North American software companies and interactive media companies. In addition, this ETF tracks the information technology industry’s benchmark index, providing investors with a comprehensive view of the sector.
This ETF invests in dozens of companies that could benefit from the growth of 5G. This ETF contains 248 international stocks, and it’s no surprise that the top 30 stocks make up over 70% of the total ETFs. Moreover, with 209 assets, investors get more diversification than they would with an ETF that tracks the NASDAQ 100, and certainly more than if they bought some tech stocks themselves.
The Best Canadian Tech ETFs
Technology stocks account for over 25% of the global market, and technology ETFs provide a cost-effective way to diversify into the sector. In addition, technology ETFs are an easy way to build a technology portfolio that allows you to play in an industry if you think it will grow. You can do so without looking at individual companies. The ETFs mentioned above offer you a highly liquid way to invest in the tech sector, but you should carefully consider which sectors you invest in.
An ETF can make it easier for individual investors to invest in technology. However, due to the varying dynamics of the sector involved, you still need to know some of the sub-sectors you are investing in. Investors need to take a close look at the composition of each ETF to see if they provide the desired technology exposure. Each of the top tech ETFs in Canada that I’ve mentioned on this list has a different investment objective that includes the performance of the tech sectors.
If you want to reduce the risks associated with investing in individual stocks and create long-term wealth through the tech sector, the best tech ETFs in Canada could be a step in the right direction. The technology sector is evolving rapidly, so it might make sense to buy a technology exchange-traded fund (ETF) if you want to invest here. However, investors may not realize that many technology ETFs in the market, especially those that track the NASDAQ, are not purely technical games.
The most popular technology ETF with over $118 billion in assets under management is QQQ, which tracks the top 100 companies on the NASDAQ. The ETF offers investors access to some of the best Canadian tech stocks to date, with Shopify Inc., Constellation Software Inc., and CGI Inc. is its three most significant holdings.
If you want to invest in Canadian tech stocks, you should consider XIT. BlackRock iShares XIT is Canada’s best tech ETF if you’re going to capitalize on the growth of companies in the Canadian tech sector. The ETF is designed to provide investors with a growth solution. On the other hand, if you’re looking for long-term capital growth involving the US tech sector and adding layers of safety through weighting, it’s probably the best tech ETF in Canada.
This fund tracks the performance of the S&P/TSX Capped Information Technology Index, which tracks top Canadian-listed technology companies such as Shopify, Constellation Software, CGI, Open Text Corp, and Blackberry. The fund was founded in 1998 and aims to track the Select Sector Technology Index. While the VGT above provides about 10% growth in mid-cap, XLK is exclusive to large caps.
In terms of sector distribution, the Invesco QQQ Index ETF prioritizes the technology (60.0%) and telecommunications (15.6%) sectors, which are combined (75.6%). On the other hand, the MSCI Information Technology Index, which forms the basis of, for example, the Fidelity ETF, has a weight of 18% for Apple and another 15% for Microsoft.
Its main assets are Silvergate Capital Corp. (SISI, a bank backing the financial technology (fintech) and cryptocurrency sectors; Coinbase Global Inc. (COIN), a custodial bitcoin wallet; and NVIDIA Corp. (NVDA), The company manufactures GPUs and provides artificial intelligence (AIAIsolutions. This ETF primarily invests in stocks of domestic or international companies involved in the cybersecurity industry through hardware and software development. Shares in the fund rose 17% in 2021 through the close on Nov. 3. In addition, this ETF seeks to acquire shares of healthcare issuers in the global economy.
Designed to track the MSCI USUSestable Markets Information Technology 25/50 Index, the fund provides broad exposure to the US technology sector. ETFs follow a hybrid strategy, offering investors an expected return, investing in large and small companies in software, information services (IT), aIT other industries. For example, the Global Tech Leaders Index ETF tracks the Solactive Global Tech Leaders Index, which primarily includes US mid and large-cap technology companies. It also consists of some Asian and European companies, but a smaller number.
The only ETF on this list offers a near-equal distribution between the top two sectors: technology (38.7%) and industrial (36.1%). Given its 48.11% stake in information technology and 19.80% in telecoms, it’s fair to say that you can consider this ETF primarily a technology ETF. This ETF tracks an index made up of US-listed shares in the semiconductor industry.
Technology sector exchange-traded funds (ETFs) buy and sell shares of electronics and information technology manufacturers and service providers that make up the technology sector. The Technology segment includes software, electronics, the internet, computers, and other products and services. This includes genomics, automation, energy, the internet and fintech (financial technology).
Unlike many other funds in the market, TEC only tracks technology companies, including the big five, and includes non-US companies such as SAP in Germany and Shopify in Canada. TEC was created to offer investors greater access to the technology sector, Mosunov explains. The TD AssetTDanagements TEC ETF offers investors cleaner access to the industry.