5 Best Technology Sector ETFs to Own Long-Term: SMH vs VGT vs XLK vs IYW vs IGM 1.6

  • Asset Class: Technology Sector

  • Oldest ETF back tested: The Technology Select Sector SPDR® Fund (XLK)

  • Correlation to U.S. Markets: 0.86

  • Long-Term Performance: 7.70% CAGR

  • S&P 500 Performance: 7.03% CAGR

  • Back test timeframe: January 1999 – April 2023

  • Number of ETFs available in this asset class: 122

  • Number of ETFs in this asset class that are 10-years old or older: 26

XLK vs SPY: January 1999 – April 2023

XLK vs SPY: December 22, 1998 – May 12, 2023

The Deep Value ETF Accumulator rankings for the 26 oldest Technology sector ETFs:

The 5 top ranked Technology sector ETFs head-to-head comparisons:

SMH vs VGT vs XLK vs IYW vs IGM: January 2012 – April 2023

SMH vs VGT vs XLK vs IYW vs IGM: February 23, 2012 – May 12, 2023

Stated objectives of the 5 top ranked Technology sector ETFs:

SMH – VanEck Semiconductor ETF (SMH®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® US Listed Semiconductor 25 Index (MVSMHTR), which is intended to track the overall performance of companies involved in semiconductor production and equipment.

VGT – Vanguard Information Technology ETF. Seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector. Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.

XLK – The Technology Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index (the “Index”). The Index seeks to provide an effective representation of the technology sector of the S&P 500 Index. Seeks to provide precise exposure to companies from technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components. Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing.

IYW – The iShares U.S. Technology ETF seeks to track the investment results of an index composed of U.S. equities in the technology sector. Exposure to U.S. electronics, computer software and hardware, and informational technology companies. Targeted access to domestic technology stocks. Use to express a sector view.

IGM – The iShares Expanded Tech Sector ETF seeks to track the investment results of an index composed of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors. Broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors. Access to hardware, software, internet marketing, interactive media, and related companies. Use to express a view on North American technology-related companies.

Thank you for taking time to read this article. If you found it useful, please share it with a friend.

Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Previous Deep Value ETF Accumulator article on Technology sector ETFs:

4 Best Technology Sector ETFs to Own Long-Term 1.5

Disclosure: We currently own shares of VGT and intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.