Among the industries with the fastest global growth are technology ones. From artificial intelligence to cellphones, technology is altering our lives and employment. For long-term development, Indian investors might find it wise to allocate funds in the top technology ETFs. This is a basic guide to help you grasp their nature and which ones you should give thought.
What is a Technology ETF?
An exchange-traded fund focusing on technology companies is a technology ETF. It covers companies engaged in software, hardware, internet services, cloud computing, and more. Stock exchanges handle these ETFs much as they handle shares. Through one single product, they let you invest in several tech stocks.
Why Should One Invest in Technology ETFs?
Globally, as much as in India, tech companies are expanding rapidly. Technology ETFs provide diversity; your money is not locked into one company. They are less expensive than purchasing separate stocks and are simple to follow and invest in.
Best ETF Choices for Indian Investors: Technology
These are some of the top technology ETF options for Indian investors looking forward to 2025:
- Motilal Oswal Nasdaq 100 ETF
- Investing in top US companies including Apple, Microsoft, Amazon, and Google.
- Examines the Nasdaq 100 index.
- Provides the opportunity to meet leaders in global technology.
- Investing in top US companies including Apple, Microsoft, Amazon, and Google.
- ICICI Prudential US Bluechip Equity Fund (Tech-heavy)
- Though not a pure ETF, this mutual fund has significant tech exposure.
- Contains big US tech companies.
- If you like a mutual fund structure, this could be a wise option.
- Though not a pure ETF, this mutual fund has significant tech exposure.
- Mirae Asset NYSE FANG+ Fund of Funds
- Concentrates on rapidly expanding technology stocks, including Tesla, Facebook, Netflix, and others.
- Excellent choice for those seeking rapid expansion.
- A simple investment tool from India.
- Concentrates on rapidly expanding technology stocks, including Tesla, Facebook, Netflix, and others.
- Invesco QQQ ETF (Via International Platforms)
- Among the most often used tech ETFs available on the US market.
- Tracks the Nasdaq 100 index.
- Available to Indian investors via some foreign investment apps or mutual fund FoFs.
- Kotak Nasdaq 100 FoF invests in the Motilal Oswal Nasdaq 100 ETF.
- Provides indirect access to top worldwide technological companies.
- Correct for long-term SIPs.
- Among the most often used tech ETFs available on the US market.
What Should One Look For Before Making Investments?
Use these considerations while choosing the best technology ETF:
- Expense Ratio: Reduced expenses raise your returns.
- Fund Size: Usually, larger funds are more stable.
- Underlying Index: View the companies the ETF covers.
- Risk Tolerance: Knowing your risk tolerance will help you since tech can be erratic.
- Investment Horizon: Ideal for long-term objectives.
Advantages of Technology ETFs
- Exposure to growth and innovative sectors.
- Worldwide diversification within one investment.
- Like ordinary stocks, easily bought and sold.
- Perfect for young investors looking for highly expanding assets.
- High volatility during market corrections calls for some thought.
- Investing in global ETFs increases your risk with currencies.
- Too much reliance on one industry.