The technology sector is off to a strong start in 2024 with the Nasdaq-100 Technology Sector Index up nearly 10% year to date. This is hardly a surprise with the rise of artificial intelligence and increasing global dependence on technology.
Technology has been a resilient sector and is likely to always be relevant given our current world, says Jason Werner, founder and accredited investment fiduciary at Werner Financial. “Also, tech companies have been known for their rapid growth structures, making them attractive for investors to add into their portfolios.”
But not all tech companies succeed, and trying to cherry-pick winners can be a loser’s game.
For simplicity and the assurance that you won’t miss out on all the fun, exchange-traded funds, or ETFs, allow you to hold many of the biggest names in Big Tech in a single ticker. With the capacity to hold dozens or even hundreds of tech stocks, ETFs can be a smart alternative to stock picking even in the best of times. But you still need to do your research to find the best tech ETF for your portfolio.
While technology is likely to continue growing in our world, not all funds are guaranteed the same success, Werner says. “We encourage investors to do their due diligence and research specific funds, as well as their underlying holdings before moving forward.”
