With so many innovations available in the market, it’s increasingly difficult for investors to pick out viable ideas. That’s where exchange-traded funds come into play. With technology-centric ETFs to buy, buyers can enjoy a wealth of compelling opportunities under one basket. This is especially useful if you have concerns about making decisions.
Just within the tech ecosystem itself, investors have myriad opportunities to choose from. Whether you’re looking at artificial intelligence, semiconductors, cybersecurity or automated solutions, your interests may outweigh the funds available in your wallet. And then comes the more draining part: deciding which specific enterprise has the legs to go the distance.
You might love Nvidia (NASDAQ:NVDA), for example, but are concerned that it might be overstretched. Well, in that case, you can select a basket of securities that cover NVDA and other enticing prospects. You’re spreading your bets and that may be a prudent decision. With that, below are tech-centric ETFs to buy.
iShares Semiconductor ETF (SOXX)
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Let’s get right into it. As you might imagine, iShares Semiconductor ETF (NASDAQ:SOXX) tracks the benchmark NYSE Semiconductor index, which comprises of U.S. chipmakers. It’s one of the ideal plays among ETFs to buy because it’s so difficult to choose among the individual brands. By acquiring units of the SOXX fund, investors enjoy exposure to a wide range of compelling ideas.
At the top of the holdings list stands Broadcom (NASDAQ:AVGO). One of the top considerations for AVGO stock is its share split, which occurred late last week. With each share now priced at a more accessible level for retail investors, participation may increase. That’s good for AVGO and that’s also good for the SOXX ETF.
Coming in at number two is Nvidia. A lot of investors who missed the boat may have questions about its forward viability. With SOXX, you can get exposure to NVDA while enjoying the collective returns of many other attractive ideas in the semiconductor space. That’s what makes this fund one of the top ETFs to buy.
Amplify Cybersecurity ETF (HACK)
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While everyone loves talking about the productivity gains from technology, people often forget that advances in digitalization also lead to productivity losses. Cybersecurity attacks have evolved from mere nuisances to causing severe financial and economic problems. From a cynical perspective, then, Amplify Cybersecurity ETF (NYSEARCA:HACK) ranks among the ETFs to buy.
However, the issue with cybersecurity stocks is that there are so many of them. Further, they may have different niche strengths, from end-to-end enterprise-level services to cloud-network protection to solutions for individual computer users. It’s difficult to know which idea will emerge as the runaway success story and that’s where HACK comes into view.
Its top holding is Broadcom, which offers its Symantec Enterprise Cloud solution. Coming in second place is Cisco Systems (NASDAQ:CSCO), which is an arguably underrated cybersecurity play. Rounding out the top three is Crowdstrike (NASDAQ:CRWD), which is a leader in endpoint protection services.
Not surprisingly, HACK is up over 11% on a year-to-date basis. However, investors should be aware that the expense ratio is a bit on the high side at 0.6%. In contrast, the category average is 0.53%.
First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT)
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For those that want to dial up their risk-reward profile, speculators should consider First Trust Nasdaq Artificial Intelligence & Robotics ETF (NASDAQ:ROBT). It’s a mouthful but it’s an intriguing concept. The ROBT fund tracks an index called the Nasdaq CTA Artificial Intelligence and Robotics index. With so much money poured into the broader field of automation, ROBT presents a wide canvas.
Interestingly, its top holding is ServiceNow (NYSE:NOW), which is an application software firm that promotes end-to-end intelligent workflow automation solutions for digital businesses. Analysts anticipate big growth for the company, with fiscal 2024 sales potentially rising by 21.4% to $10.89 billion. Coming in second is Palantir (NYSE:PLTR), a big data analytics firm. PLTR has been attracting the spotlight lately as it marches higher, backed by rising sales.
Still, not everything is so rosy with ROBT. Before stepping foot into the arena, investors should realize that it’s a low-volume fund. Further, the performance has been disappointing, only inching into positive territory for the year. Still, the speculation is that ROBT is one of the ETFs to buy based on its forward potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.