Best Performing Technology ETFs for Q3 2020


The technology sector includes companies focused on the research, development, and sale of a broad range of hardware and software used by consumers and businesses. It includes giants such as Apple Inc. (AAPL) and Microsoft Corp. (MSFT), as well as fast-growing young companies. The sector has, in recent years, often been a major driver of overall gains in the stock market. Perhaps it’s no surprise that there are 49 technology exchange-traded funds (ETFs), not including leveraged and inverse funds as well as those with less than $50 million in assets under management (AUM). Despite the success of many large tech companies, less-well-known enterprises can carry more investment risk. ETFs can be a useful way to manage this risk.

As of May 11, 2020, the best technology sector ETF for Q3 2020 is the ARK Next Generation Internet ETF (ARKW). Below, we’ll look at the top 3 technology ETFs.

  • Performance over 1-year: 36.6%
  • Expense Ratio: 0.76%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 281,817
  • Assets Under Management: $793.0 million
  • Inception Date: September 30, 2014
  • Issuing Company: ARK Investment Management

The ARK Next Generation Internet ETF is an actively-managed fund from the team at ARK Invest. As a result, it does not track a particular index. The firm’s strategies have a track record of consistently beating the market. ARKW aims to identify companies that will profit from developments in cloud computing, artificial intelligence (AI), financial technology, and similar innovations. Its largest holdings are Tesla Inc. (TSLA), the electric car company; Square Inc. (SQ), the mobile payments company; and Roku Inc. (ROKU), the digital streaming equipment maker.

  • Performance over 1-year: 27.9%
  • Expense Ratio: 0.48%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 100,419
  • Assets Under Management: $107.5 million
  • Inception Date: June 5, 2018
  • Issuing Company: O’Shares

Tracking the O’Shares Global Internet Giants Index, OGIG selects from a pool of 2,500 stocks worldwide to provide investors access to companies that derive most of their revenue from internet and e-commerce activities. The fund’s largest holdings are Inc. (AMZN), the e-commerce giant; Alphabet Inc. (GOOGL), the parent company to Google; and Microsoft, the multinational tech company.

  • Performance over 1-year: 27.6%
  • Expense Ratio: 0.75%
  • Annual Dividend Yield: 0.67%
  • 3-Month Average Daily Volume: 806,617
  • Assets Under Management: $3.2 billion
  • Inception Date: October 31, 2014
  • Issuing Company: ARK Investment Management

ARKK is the flagship actively-managed fund at ARK Invest and focuses on stocks of varying market caps in the U.S. Like sister fund ARKW, the ARK Innovation ETF invests in companies on the leading edge of technology. In particular, ARKK buys tech companies poised to profit from “disruptive innovation,” including DNA technologies, automation, and energy innovation. The top holdings for ARKK are currently Tesla; Square; and Invitae Corp. (NVTA), the medical genetics company.

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