High-tech exchange-traded funds (exchange traded funds) have plummeted in recent months, fueled by the artificial intelligence boom. The biggest beneficiaries of this trend are semiconductor companies, most notably his Nvidia NVDA, whose stock price has more than tripled in the last year. Semiconductor stocks have been the best performers in the U.S. technology index over the past few years. As a result, strategies focused on semiconductor stocks dominate the ranks of the category's best performers. Additionally, 4 out of his 5 stocks that passed the Best His ETF review are powered by iShares.
- VanEck Semiconductor ETF SMH
- iShares Expanded Tech Sector ETF IGM
- iShares US Technology ETF IYW
- iShares US Tech Independent FCs ETF IETC
- iShares Semiconductor ETF SOXX
Tech stock ETF performance
Tech stocks outperformed the U.S. market by 7.4 percentage points last year and by 1 percentage point over the past five years. However, over the past three years, the Morningstar U.S. Market Index outperformed this category by 8.8 points due to the 2022 tech recession due to high interest rates and inflation.
Screening for the best performing tech stock ETFs
To find the best tech stock ETFs, we looked for the ones with the best returns over multiple time periods. First, we screened for funds that ranked in the top 33% of their category using the lowest-cost share class over one-, three-, and five-year time horizons. This list was filtered for funds with a Morningstar Medalist Rating of Gold, Silver, or Bronze. Funds with an asset base of less than $100 million and with minimal or no Morningstar analyst opinion on Medalist ratings were excluded.
On this screen, we've highlighted the five best-performing tech ETFs over the past year.
Top-performing tech stock ETF
VanEck Semiconductor ETF
- Morning Star Medalist Rating: Silver
- Morningstar Rating: 5 stars
“Over 10 years, this stock class outperformed its category average return by 11.2 percentage points annually. It also outperformed the U.S. technology index by 5.2 percentage points over the same period. However, it is worth noting that this share class has a return of 73.2%, which is 31.2 percentage points ahead of its average peer and ranks within the top 10% of its category. seeks to replicate as closely as possible the price and yield performance of the MVIS U.S.-Listed Semiconductor 25 Index, before fees and expenses.”
—Morningstar Manager Research
iShares Extended Tech Sector ETF
- Morning Star Medalist Rating: Silver
- Morningstar Rating: 4 stars
“This fund has provided superior returns relative to its peers, but underperformed returns relative to category benchmarks. This share class has outperformed its average peer by 4.4 percentage points annually over 10 years. However, it failed to clear the hurdle of outperforming the U.S. technology index, losing an annualized 1.6 percentage points over the same period. This investment consists of North American stocks in the technology sector. It tracks the investment results of the index and aims to select North American stocks from the communications services and consumer freedoms sectors.”
—Morningstar Manager Research
iShares US Technology ETF
- Morning Star Medalist Rating: Silver
- Morningstar Rating: 5 stars
“It offers better returns compared to its peers, but similar returns compared to its category benchmark. Over a 10-year period, this stock class outperformed its category average return by 5.9 percentage points per year. And Its returns mirrored the performance of US technology indexes over the same period. While the overall rating is independent of one-year performance numbers, the return for this stock class was 65.5%, It is notable that it leads its peers by a significant 23.5 percentage points and is within the top 10% of its category. This investment tracks the investment results of the Russell 1000 Technology RIC 22.5/45 Capped Index. The underlying index measures the performance of the technology sector of the U.S. stock market as defined by FTSE Russell.
—Morningstar Manager Research
iShares US Tech Independence FCs ETF
- Morning Star Medalist Rating: Silver
- Morningstar Rating: 4 stars
“When narrowed down to the past three years, the fund underperformed the U.S. Technology Index by 3.1 percentage points per year, but outperformed its peer average by 10.5 percentage points.More importantly, looking at the longer term, the strategy The investment lagged the index by 3.1 percentage points annually over a five-year period.The investment provides access to U.S. companies with technology exposure, classified using a proprietary system. It is intended to provide.”
—Morningstar Manager Research
iShares Semiconductor ETF
- Morning Star Medalist Rating: Silver
- Morningstar Rating: 5 stars
“This share class outperformed its peer average by 10.8 percentage points annually over 10 years. It also outperformed the Morningstar US Technology Index by 4.7 percentage points annually over the same period. While independent of one-year performance numbers, it's worth noting that this share class has a return of 66.9%, which is 24.9 percentage points ahead of its average peer and in the top 10% of its category. This investment seeks to track the investment results of the NYSE Semiconductor Index, which is comprised of U.S. stocks in the semiconductor sector. The Fund invests up to 20% of its assets in certain futures, options and swap contracts. , may invest in cash and cash equivalents.
—Morningstar Manager Research
