The technology sector can be a fickle one. You have years like 2022, when tech exchange-traded funds tumbled, immediately followed by a 2023 recovery that saw some funds return upward of 50%. While 2024 and 2025 provided more sedate returns amid scrutiny of artificial intelligence profit margins, the industry is entering 2026 at an exciting crossroads. The world is moving beyond the “AI hype” phase and into a year that could be defined by tangible implementation.
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“AI skepticism is becoming harder to defend as the tech delivers more visible value,” says Gene Munster, managing partner at Deepwater Asset Management. That said, “we believe we’re still earlier in the AI buildout than most investors expect, and we anticipate the Nasdaq and the broader AI trade to perform well in (calendar year) 2026,” he adds.
But not all tech companies succeed, and in an era of record market concentration, trying to cherry-pick winners can be a loser’s game. With the capacity to hold dozens or even hundreds of tech stocks, ETFs remain a smart alternative to individual stock picking. But you still need to do your research to find the best tech ETF for your portfolio.
Here are some leading tech ETFs to consider in 2026:
| ETF | EXPENSE RATIO | ASSETS |
| iShares U.S. Tech Independence Focused ETF (ticker: IETC) | 0.18% | $878.4 million |
| Innovator Deepwater Frontier Tech ETF (LOUP) | 0.70% | $170.4 million |
| Vanguard Information Technology ETF (VGT) | 0.09% | $130.7 billion |
| Proshares S&P Technology Dividend Aristocrats ETF (TDV) | 0.45% | $257.4 million |
| Global X Data Center & Digital Infrastructure ETF (DTCR) | 0.50% | $1.1 billion |
| Themes Humanoid Robotics ETF (BOTT) | 0.35% | $32.3 million |
| Ark Autonomous Technology & Robotics ETF (ARKQ) | 0.75% | $2.0 billion |
iShares U.S. Tech Independence Focused ETF (IETC)
IETC is a tech ETF that practices what it preaches. The managers use machine learning and big data to find domestic tech companies that are driving U.S. technological independence and may prove more resilient to geopolitical headwinds.
The fund identifies winners not by looking at outdated industry codes, but by using natural language processing, or NLP, to scan millions of data points, from patent filings to quarterly transcripts, to see which companies are actually building the moats of the future. Think of it as a tech fund for true tech nerds who want an AI-optimized portfolio.
Top holdings currently include a fairly sizable weighting of Palantir Technologies Inc. (PLTR) at nearly 11% of the portfolio and Broadcom Inc. (AVGO) at 10.9%, alongside heavyweights like Nvidia Corp. (NVDA) at about 7.6%. This gives the fund a unique tilt toward the intelligence and infrastructure layer of the economy rather than just consumer gadgets.
Unlike many thematic funds that charge a premium for their “secret sauce,” IETC is surprisingly affordable with a 0.18% expense ratio.
Innovator Deepwater Frontier Tech ETF (LOUP)
It could be said that nothing is certain except death, taxes and the fact that technology is always changing. What was innovative yesterday is old news by lunch today. This idea of a constantly changing frontier in technology is what LOUP is built around.
“Today, that frontier is dominated by AI, but over time it will expand to areas like quantum computing, advanced nuclear energy and space-based technologies,” Munster says. “That means investors don’t have to rotate between narrowly focused ETFs as leadership shifts.”
By excluding the Magnificent 7 and keeping the market cap of each holding to between $250 million and $500 billion, LOUP’s portfolio has low overlap with most mainstream tech benchmarks. “Most investors already have exposure to mega-cap technology through equity or broad tech funds,” Munster says. “LOUP is designed to complement those holdings with a concentrated, high-conviction portfolio of 30 companies focused on innovation outside of the most widely owned names.”
This small portfolio is conviction-weighted, meaning the funds are held in proportion to how strongly the managers feel about them. This gives management the flexibility to go after market disruptors, but also means investor returns depend on how well the managers can pick winners.
Vanguard Information Technology ETF (VGT)
Ranked the No. 1 tech ETF by U.S. News, the Vanguard Information Technology ETF isn’t as flashy as other tech funds, but it makes up for flash with dependability and low cost. This passively managed ETF holds hundreds of stocks and comes with a low 0.09% expense ratio.
It follows the MSCI US Investable Market Information Technology 25/50 Index, which aims to track U.S. tech stocks of all sizes. This leads to a portfolio of 320 stocks, but not the most diverse of offerings. The top 10 names represent 59% of total assets, with almost 45% in Nvidia, Apple Inc. (AAPL) and Microsoft Corp. (MSFT) combined. So watch out for overconcentration if you already hold these companies in your portfolio.
Proshares S&P Technology Dividend Aristocrats ETF (TDV)
“Tech spending will continue to rise and benefit many more players than those who have participated to date,” says David Waddell, CEO and chief investment strategist at Waddell & Associates. “With concerns rising about the debt usage associated with building out the hyperscalers, I would encourage investors to seek out dividend-paying technology names to provide insulation from later cycle debt anxieties.”
This is what TDV does by focusing on established tech companies that have raised their dividend every year for at least the past decade. These dividend achievers tend to have more stable earnings and stronger fundamentals than new upstarts in the tech scene.
The fund also improves diversification with an equal-weighting scheme. Instead of having the largest companies dominate the fund, as with market-cap weighted funds, every holding is given an equal weight in the portfolio.
Global X Data Center & Digital Infrastructure ETF (DTCR)
“The amount of infrastructure required to support the huge tech capex cycle creates other more conservative ways of playing,” Waddell says. One example is the Global X Data Center & Digital Infrastructure ETF, which mixes tech and real estate.
The $1.1 billion fund invests in companies that operate data centers and other digital infrastructure for the communication sphere. Think companies like AI and blockchain data center operator Applied Digital Corp. (APLD) and digital infrastructure real estate investment trust, or REIT, Equinix Inc. (EQIX).
Themes Humanoid Robotics ETF (BOTT)
“During the first wave of AI, we taught computers how to think,” Waddell says. “(In) the next wave, we will teach AI how to move.” The second wave is already underway with autonomous vehicles and vacuum cleaners. Waddell expects several autonomous humanoid robots to go on sale this year, too.
If you’re a “tech zealot” who wants to be “highly aggressive,” he says to consider adding BOTT to your portfolio, but to “handle with care.”
This is a hyper-focused tech ETF that tracks the Solactive Global Humanoid Robotics Index. This includes the 30 largest companies in factory automation, semiconductors, industrial machine parts, and equipment and programmable logic for ASIC semiconductors with a positive total return over the prior 12 months.
With just over $32 million in assets and a trading volume that averages about 10,000 shares per day, this one can be a bumpy ride. But it can also be a highly profitable one. BOTT returned almost 100% over the past year, but it only debuted in April 2024. It also carries a 0.35% expense ratio, which is a bit steep for a passively managed index ETF.
Ark Autonomous Technology & Robotics ETF (ARKQ)
For a “lower-octane way to play” a similar robotics angle as BOTT, Waddell suggests ARKQ. The fund invests primarily in autonomous technology and robotics companies. These include Tesla Inc. (TSLA), which represents about 10% of the fund, and Teradyne Inc. (TER), at 10.6% of the fund. With only 38 holdings, it’s not meaningfully more diversified than BOTT, but it does take a broader lens to the robotics industry by not focusing solely on humanoid robots.
ARKQ is notorious for being a high-conviction strategy, though. The managers are willing to place concentrated bets, as evidenced by the significant holding in TSLA. So this is by no means a steady ride. What ARKQ can provide that BOTT cannot is a longer track record (ARKQ debuted in 2014) and considerably higher assets ($2 billion) and trading volume (298,000 per day, on average). ARKQ is also actively managed, so you have industry experts making educated bets rather than just following an index.
All of this comes at a considerably higher cost, with a 0.75% expense ratio compared to BOTT’s 0.35%.
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7 Best Tech ETFs to Buy in 2026 originally appeared on usnews.com
Update 02/02/26: This story was published at an earlier date and has been updated with new information.
