Three Technology ETFs to Consider Before 2026

As 2025 nears its end, tech stocks are achieving remarkable gains, largely fueled by a rising demand for artificial intelligence (AI). This year has seen tech stocks reaching new peaks, providing solid returns for investors. However, there are uncertainties about what 2026 might bring. While there are numerous strong players in the tech field, it’s hard to say whether this upward trend can be sustained in the coming year. This is where exchange-traded funds (ETFs) come into play.

If you’d rather avoid the risks associated with specific tech stocks, investing in tech ETFs might be a smart choice, as they offer significant advantages in the sector. These ETFs typically focus on technology, offer low expense ratios, and include companies with robust fundamentals. Among them, the iShares Enhanced Technology Software Sector ETF (IGV), Vanguard Information Technology Index Fund ETF (VGT), and Invesco QQQ Trust (NASDAQ:QQQ) stand out as worthwhile options for 2026.

The iShares Expanded Technology Software Sector ETF tracks a range of North American software industry stocks. This fund is built on a mix of high-quality companies boasting strong revenue growth and profit margins.

With 115 stocks in its portfolio, IGV has an expense ratio of 0.39%. While it is slightly more costly, it comprises some major tech corporations, including Microsoft and Palantir. The top ten holdings make up 62% of the fund, with application software leading the investment area.

IGV covers investments in enterprise automation, cloud computing, cybersecurity, and AI tools. In the past year, it achieved a total return of 28.64%, with 31.95% over three years. Currently, it’s up 8.17% in 2025, trading at around $108.07. Although the software sector lagged in 2025, there’s potential for significant improvement as we head into next year.

If you predict that the tech sector will continue being a driving force in the U.S. economy, the Vanguard Information Technology ETF could be fitting. This fund, aimed at growth investors, includes over 300 companies, focusing particularly on prominent tech giants. Remarkably, the semiconductor sector gets the largest allocation at 32.10%.

Top companies in VGT include Nvidia, Apple, and Microsoft, with Nvidia taking a significant share. The fund’s assets reach $130 billion, and it has produced a three-year cumulative return of 120.57%, while being up 23.13% in 2025 at a price of around $765.03.

The Invesco QQQ Trust, while not exclusively a tech ETF, remains significantly tech-focused, dedicating over 64% to that sector. It offers a lower-risk alternative in comparison to both IGV and VGT, managing $408 billion in assets. Its historical returns have been impressive, with a 113% cumulative return over five years and a staggering 486% over ten years.

QQQ’s top holdings cover about half of the fund, featuring well-known companies like Amazon and Tesla. The expense ratio stands at 0.18%, and it trades at approximately $622.11, reflecting a year-to-date increase of 21.93%. This ETF houses some of the most significant tech companies in America, which also includes many advancements in AI.

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