"The stock market was driven higher by the strong demand for artificial intelligence (AI), which led tech stocks to new highs. While the year was beneficial for investors who held tech stocks, 2026 may not be a repeat. There are terrific tech companies, but there's no guarantee that the sector will continue to thrive next year. This is where exchange-traded funds come into play."
"If you do not want to risk owning specific tech stocks, you can consider investing in tech ETFs that give you the best of the industry. These ETFs are heavily tech-focused, have a low expense ratio, and hold companies that are backed by healthy fundamentals. iShares Expanded Tech-Software Sector ETF ( IGV), Vanguard Information Technology Index Fund ETF ( NYSE: VGT), and Invesco QQQ Trust ( NASDAQ:QQQ) are 3 ETFs to load up on before 2026."
Tech stocks outperformed in 2025 driven by strong demand for artificial intelligence, pushing many names to new highs. Future performance in 2026 is uncertain despite the presence of strong tech companies. Exchange-traded funds offer diversified exposure to the sector while lowering single-stock risk. Recommended ETFs include iShares Expanded Tech-Software Sector ETF (IGV), Vanguard Information Technology Index Fund ETF (VGT), and Invesco QQQ Trust (QQQ). IGV tracks North American software equities, holds 115 stocks with a 0.39% expense ratio, concentrates in application and systems software, and focuses on enterprise automation, cloud computing, cybersecurity, and AI productivity tools.
Read at 24/7 Wall St.
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