5 Best Performing Technology ETFs in 2023

4. iShares U.S. Technology ETF (NYSE:IYW)

YTD Share Price Performance as of August 24: 46.54%

The main objective of the iShares U.S. Technology ETF (NYSE:IYW) is to replicate the investment performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, which consists of U.S. technology sector equities. This index offers exposure to American firms in electronics, computer software and hardware, and information technology sectors. iShares U.S. Technology ETF (NYSE:IYW) was introduced on May 15, 2000. As of August 24, 2023, the fund holds a portfolio comprising 136 stocks, and its net assets are valued at $10.8 billion. It features an expense ratio of 0.39%. iShares U.S. Technology ETF (NYSE:IYW) is one of the best performing ETFs in the technology sector. 

Microsoft Corporation (NASDAQ:MSFT) is one of the top holdings of the iShares U.S. Technology ETF (NYSE:IYW). The acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI) by Microsoft Corporation (NASDAQ:MSFT) for $69 billion is expected to be finalized around the beginning of October. This follows Microsoft’s submission of an updated agreement to the UK antitrust authority. There’s a chance that the European Union might request Microsoft to resubmit the deal, but this outcome remains uncertain presently.

According to Insider Monkey’s second quarter database, 300 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 289 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 39.2 million shares worth $13.3 billion. 

Mairs & Power Growth Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“Regarding stock selection in the first half, Nvidia (NVDA) was a massive outperformer, up 189.54%. Amazon and Microsoft Corporation (NASDAQ:MSFT) were also positive contributors, up 55.19% and 42.66%, respectively. All three stocks benefited from a renewed interest in growth stocks by investors in the first half of the year.

Microsoft (MSFT) was another positive contributor to performance in the first half. The company continued to take share in cloud computing. Its strong relationships with customers, as well as knowledge of their businesses, differentiates its offering, which is also helped by leading investments in AI. We expect the company will continue to integrate AI tools into most of its productivity suite of software in the not-too-distant future. This should help with employee productivity and the labor constraints of most of its customers.”