Investing in Innovation: 5 Best Tech and Disruptive ETFs

1. iShares U.S. Technology ETF (NYSE:IYW)

5-Year Share Price Performance as of March 20: 182.16%

iShares U.S. Technology ETF (NYSE:IYW) aims to mirror the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, which consists of US technology sector equities. As of March 19, 2024, the fund holds net assets totaling $16.2 billion, with a portfolio comprising 131 stocks and an expense ratio of 0.40%. It was launched on May 15, 2000. iShares U.S. Technology ETF (NYSE:IYW) is one of the best tech ETFs to invest in. 

Salesforce, Inc. (NYSE:CRM) is the largest holding of the iShares U.S. Technology ETF (NYSE:IYW). On February 28, Salesforce, Inc. (NYSE:CRM) declares $0.40 per share quarterly dividend, which is distributable on April 11 to shareholders on record as of March 14. The company also boosted its share buyback plan by $10 billion.

According to Insider Monkey’s fourth quarter database, 131 hedge funds were bullish on Salesforce, Inc. (NYSE:CRM), up from 122 funds in the prior quarter. 

Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its fourth quarter 2023 investor letter:

“In the fourth quarter, the top relative and absolute contributors to the Portfolio’s performance were Netflix, ServiceNow, and Salesforce, Inc. (NYSE:CRM).

Salesforce has continued to grow its revenues at what we see as a healthy rate despite market concerns about the impact of the weaker macroeconomy on its business and penetration rates in its core CRM offering. Even its most mature and largest offerings, Sales Cloud and Service Cloud, are still growing revenue at double-digit rates. In addition, management realized that their cost structure, especially in salespeople, had gotten too bloated. Over the past year and a half, the company has run a much more streamlined expense structure that has led to strong operating margin expansion and earnings growth. Importantly, we do not feel Salesforce has cut into its innovation or sales muscle through these cost cuts but has eliminated unnecessary excess fat from the organization.”

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