Best 2020 Technology ETFs and Mutual Funds

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TL;DR: Technology stocks have been the big winners over the last decade. Subsequently, there are a lot of technology funds both good and bad. Choose carefully from the list below and enjoy some amazing returns.


The technology sector includes a very diverse group of companies. The most popular companies in this sector are household names such as Microsoft Corp., Apple Inc., and Alphabet (Google). A company is considered a technology company if it is involved in research, development, or distribution of technology goods and services. It includes both companies that manufacture electronics as well as those that develop software. 

Companies in this sector are typically relied upon by companies in other sectors to make their businesses more efficient and profitable. For this reason, companies in the technology sector with the best advanced products and technology tend to be some of the best companies in the stock market. 

The technology sector has over 140 ETFs and mutual funds. Because this sector has been the highest performing sector in the market for quite some time a greater number of portfolio managers are attracted to this sector in the hopes of outperforming the overall market. 

Because there are many funds to choose from, it is easier to find a good fund, but at the same time you also increase your chances of choosing a fund that under-performs the technology index. For instance, the Hennessy Technology Fund (HTECX) has only realized a five year annual return of 13.75% while the sector as a whole has gained roughly 24% over the same time period. Hennessey is not alone in their subpar performance. 

Nevertheless, there are many good ETFs and mutual funds to choose from. The table below lists many good options. This list includes possible ETFs and mutual funds (minimum investment of $10,000 or less) with a market history of at least five years. For reference, the SPDR S&P 500 ETF is included and highlighted green to compare these funds with overall market returns. The ETFs highlighted in yellow are funds that mimic the overall technology sector (passively managed) and have industry standard weighting. Funds not highlighted are 1) ETFs that are based on a niche index, have an enhanced strategy or are actively managed, or based on non-standard weighting, or 2) are a mutual fund attempting to beat the market sector with various strategies.







Best Sector Index ETFs (least risky)

Vanguard Information Technology (VGT)

Five Year Return (After Fees): 25.38%
Expense Ratio: 0.10%
Benchmark Index: MSCI US Investable Market Index Information Technology 25/50 
ETF Type: Passively Managed, Sector Index 
Top Five Holdings: Apple Inc., Microsoft Corp., Visa Inc., Mastercard Inc., NVIDIA Corp.


Fidelity MSCI Information Technology Index (FTEC)

Five Year Return (After Fees): 24.80%
Expense Ratio: 0.084%
Benchmark Index: MSCI USA IMI Information Technology Index
ETF Type: Passively Managed, Sector Index
Top Five Holdings: Apple Inc., Microsoft Corp., Visa Inc., NVIDIA Corp., Mastercard Inc. 


Best Mutual Funds (more risky)

BlackRock Technology Opportunities Fund (BGSAX) - Recommended
Invests in US and global technology companies in all market caps, which have rapid and sustainable growth potential 

Five Year Return (After Fees): 30.19%
Expense Ratio: 1.18%
Benchmark Index: N/A 
ETF Type: N/A 
Top Five Holdings: BlackRock Liquidity T-Fund Instl., Apple Inc., Microsoft Corp., Amazon.com Inc., Tesla Inc.


Fidelity Select Technology Portfolio (FSPTX)
Invests in companies that will develop products, processes, or services and will provide or benefit from technological advancements and improvements.

Five Year Return (After Fees): 28.66%
Expense Ratio: 0.71%
Benchmark Index: N/A 
ETF Type: N/A 
Top Five Holdings: Apple Inc., Microsoft Corp., Adobe Inc., Salesforce.com Inc., Facebook Inc.

Berkshire Focus Fund (BFOCX) - Recommended
Invests in the electronic technology industry.

Five Year Return (After Fees): 27.51%
Expense Ratio: 1.95%
Benchmark Index: N/A 
ETF Type: N/A 
Top Five Holdings: Amazon.com Inc., Apple Inc., Microsoft Corp., Tesla Inc., Shopify Inc.


Best Enhanced Strategy, Actively Managed, or Niche Index ETFs (more risky)

ARK Web x.0 (ARKW)
Invests in companies that are expected to benefit from shifting the bases of technology infrastructure from hardware and software to the cloud, enabling mobile and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services..

Five Year Return (After Fees): 38.98%
Expense Ratio: 0.76%
Benchmark Index: MSCI USA IMI Information Technology Index: Next Generation Internet
ETF Type: Actively Managed, Niche Index 
Top Five Holdings: Tesla Inc., Square Inc., Roku Inc., HUYA Inc., 2U Inc.


ARK Innovation (ARKK) - Recommended
Invests in companies that produce "disruptive innovation" which is defined as the introduction of a technologically enabled new product or service that potentially changes the way the world works. 

Five Year Return (After Fees): 34.35%
Expense Ratio: 0.75%
Benchmark Index: FactSet Innovative Technology Index
ETF Type: Actively Managed, Niche Index 
Top Five Holdings: Tesla Inc., Invitae Corp., Square Inc., CRISPR Therapeutics, Roku Inc.





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