5 Best Technology ETFs To Buy

2. iShares Semiconductor ETF (NASDAQ:SOXX)

5 Year Performance as of September 12: 162.99%

Introduced in July 2001, the iShares Semiconductor ETF (NASDAQ:SOXX) aims to mimic the performance of the ICE Semiconductor Index, which includes companies focused on the semiconductor sector. As of September 13, the total net assets of the ETF are valued at nearly $9 billion, while featuring an expense ratio of 0.35%. iShares Semiconductor ETF (NASDAQ:SOXX)’s portfolio comprises 30 stocks. It is one of the best tech ETFs to buy.

Broadcom Inc. (NASDAQ:AVGO) is a prominent holding of the iShares Semiconductor ETF (NASDAQ:SOXX). Broadcom Inc. (NASDAQ:AVGO) specializes in the manufacture of semiconductor devices and analog products within two major segments – Semiconductor Solutions and Infrastructure Software. According to Insider Monkey’s second quarter database, 72 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO). This number remained unchanged from the past quarter. 

Aristotle Atlantic Partners made the following comment about Broadcom Inc. (NASDAQ:AVGO) in its Q2 2023 investor letter:

“Broadcom contributed to outperformance, as the company is seen as a key beneficiary of the investment in generative Artificial Intelligence (AI) and Large Language Models (LLM). The company’s Application-Specific Integrated Circuit (ASIC) chips are being custom-built for customers to use in their data centers for accelerated computing. Broadcom’s networking chipsets are also expected to see increased levels of demand, as customers increase investments to enable the high-speed data transfer required by advanced AI training and inference. The company also announced a new multi-year supplier relationship with Apple, the company’s largest customer.”