5 Best Technology ETFs To Buy

3. Technology Select Sector SPDRFund (NYSE:XLK)

5 Year Performance as of September 12: 127.74%

Introduced in December 1998, the Technology Select Sector SPDRFund (NYSE:XLK) aims to replicate the performance of the Technology Select Sector Index, which is a representation of the technology sector within the S&P 500 Index. The ETF offers exposure to tech companies involved in hardware, software, semiconductors, and other IT services. As of September 13, the ETF had nearly $50 billion in assets under management, while featuring an expense ratio of 0.10%. 

Apple Inc. (NASDAQ:AAPL) is one of the largest holdings of Technology Select Sector SPDRFund (NYSE:XLK). Apple Inc. (NASDAQ:AAPL) is a market leader in the development of personal computers, gadgets, and cloud-services. The company also offers value-added services under subscription models. According to Insider Monkey’s second quarter database, 135 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL). This number increased from 131 hedge funds from the preceding quarter. 

Choice Equities Capital Management said this about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:

“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)”