Tech investors who are looking to go bargain-hunting amid the current selloff, but don't want to be too exposed to a single company, should take a look at some of the ETFs that focus on one part of the sector or another.
With the qualifier that the panic-selling that has gripped equity markets in recent weeks might not be over yet, here are a few tech ETFs that look appealing in terms of their industry/thematic focus and stock holdings.
1. The iShares Expanded Tech Sector ETF (IGM)
Assets Under Management: $1.7B
Expense Ratio: 0.46%
IGM is a large-cap tech and fintech ETF. About 40% of its holdings consist of positions in Amazon, Microsoft, Apple, Alphabet and Facebook, but -- unlike some other large-cap ETFs that are heavily weighted towards Apple and Microsoft -- each company makes up less than 10% of the fund. Other major holdings include Visa, Mastercard, Intel, Netflix, Cisco, Adobe and Nvidia.
2. The Invesco Dynamic Semiconductors ETF (PSI)
Assets Under Management: $234M
Expense Ratio: 0.58%
Though not the only chip ETF out there, PSI's portfolio, which consists of 30 chip industry firms picked using a proprietary, quantitative approach, stood out to me. Its 10 largest positions are AMD, Nvidia, Lam Research, Qualcomm, Micron, Applied Materials, Texas Instruments, Intel, Inphi and Kulicke & Soffa, with no holding accounting for more than 6% of the fund.
3. The Invesco Nasdaq Internet ETF (PNQI)
Assets Under Management: $492M
Expense Ratio: 0.62%
A play on both U.S. and international Internet firms. Netflix, Amazon, Alibaba, Alphabet and Facebook are the largest holdings, with each company accounting for between 7% and 10% of the fund. Other major holdings include JD.com, Baidu, MercadoLibre, Booking, eBay and Twitter.
4. The KraneShares CSI China Internet ETF (KWEB)
Assets Under Management: $2.6B
Expense Ratio: 0.76%
KWEB has a relatively high expense ratio, but it does provide an option for making a diversified bet on Chinese tech companies. Major holdings include Alibaba, Tencent, Meituan Dianping (listed in Hong Kong), JD.com and Baidu. No holding accounts for more than 10% of the fund.
5. The iShares Expanded Tech-Software ETF (IGV)
Assets Under Management: $3.06B
Expense Ratio: 0.46%
To a large extent, IGV is a play on enterprise software firms. But it also has a few game developers and security hardware/software firms. Its largest holdings are Adobe, Microsoft, Salesforce.com, Oracle, Intuit, ServiceNow and Activision Blizzard, with no holding accounting for more than 10% of the fund.