5 Best Technology ETFs To Buy

4. Vanguard Information Technology Index Fund (NYSE:VGT)

5 Year Performance as of September 12: 113.44%

Vanguard Information Technology Index Fund (NYSE:VGT) is a passively managed ETF that aims to replicate the performance of the MSCI US Investable Market Information Technology 25/50 Index.  The ETF achieves this by employing a full-replication approach and a sampling strategy, when appropriate. Vanguard Information Technology Index Fund (NYSE:VGT) includes companies from the technology sector including those involved in electronics, computing, and applied sciences. As of July 2023, the total net assets for the ETF exceed $63.2 billion, while the expense ratio is maintained at 0.10%. It is one of the premier technology ETFs to watch.

Microsoft Corporation (NASDAQ:MSFT) is a significant holding of Vanguard Information Technology Index Fund (NYSE:VGT). Microsoft Corporation (NASDAQ:MSFT) is a market leading tech company. Be it personal devices, laptops, gaming consoles, licensing software services, or cloud-based solutions, Microsoft Corporation (NASDAQ:MSFT) is heavily involved across all things tech. According to Insider Monkey’s second quarter database, 300 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT). In comparison, 289 hedge funds had invested in the company during the preceding quarter. 

Mairs & Power Growth Fund had this to say 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.”