Top Tech ETFs For November

Much of the market’s rally since the crashes of March can be attributed to tech. Tech stocks have proven to be innovative, adaptable, and vital to the COVID economy. However, as of late, investors have been fleeing high flying tech equities and “stay-at-home” stocks, and rotating into recovery stocks that were severely harmed during the COVID pandemic. The Dow surged by 262 points and 800 points the last two trading sessions following Pfizer PFE and BioNTech’s announcement about their more than 90% effective Covid-19 vaccine. On the other hand, the Nasdaq, led by Big Tech and “stay-at-home” winners, sold off during the last two trading sessions. While there are those who believe that this may signal a long-term rotation, others are more bullish. Tech investors are anticipating a divided Congress that will struggle to pass tax increases or stricter regulations. While the sentiment on tech’s future is mixed, Q.ai’s deep learning algorithms have identified several interesting Tech ETFs based on fund flows over the last 90-days, 30-days, and 7-days. This includes only one Top Buy, one Attractive, three Unattractive, and one Top Short. We also included a few interested unrated ETFs as well.

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Top Buy

VanEck Vectors Semiconductor ETF (SMH)

The first Top Buy for the month according to our AI systems is the VanEck Vectors Semiconductor ETF SMH . This ETF aims to follow and track the overall performance of companies involved in semiconductor production and equipment. This ETF is unique compared to other semiconductor focused ETFs, because their holdings are not limited to exclusively US companies. Based on AUM, it is on the smaller side with $3,260,402,750.21 AUM. It has seen consistently positive fund flows of $300,191,670.50 over the last 90-days, $447,982,110.50 over the last 30-days, and $237,472,603.50 over the last week. Its net expense ratio of .35% is relatively middle of the pack compared to other tech ETFs, but pricier than ETFs in different sectors.

Attractive

iShares PHLX Semiconductor ETF (SOXX)

The only Attractive ETF for this month is another ETF focused on the semiconductor space- the iShares PHLX Semiconductor ETF SOXX . This ETF aims to follow and track the overall performance of US based companies involved in semiconductor production and equipment. The ETF is also on the smaller side with $3,931,242,789.40 AUM. The ETF has also seen consistently positive fund flows, with a 90-day fund flow of $121,565,700.00, 30-day fund flow of $59,327,960.00, and 1-week fund flow of $45,833,095.00. The iShares PHLX Semiconductor ETF also has a net expense ratio of .48% which is certainly on the pricier side.

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Unattractive

Invesco QQQ Trust (QQQ)

The Invesco QQQ Trust QQQ  comes in as our first Unattractive ETF for the month. This ETF is considered to be the benchmark ETF that tracks the NASDAQ NDAQ index. With $134,946,317,920.00 AUM, it is by far the largest tech ETF in terms of AUM on our list. It has seen mixed fund flows, with a 90-day fund flow of $7,865,532,108.00, 30-day fund flow of $-1,327,551,466.50, and 1-week fund flow of $638,960,798.00. It also has a fairly cheap net expense ratio of .2% compared to other tech ETFs.

Vanguard Information Technology ETF (VGT)

The Vanguard Information Technology ETF VGT  is our second Unattractive ETF. This ETF is passively managed, and focuses specifically on companies that engage in information technology. Its 5 largest holdings are fairly standard- Apple AAPL , Microsoft MSFT , Visa V . Nvidi NVDA a, and Mastercard MA . The ETF is mid-sized with $37,336,487,913.64 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $350,524,703.20, a 30-day fund flow of $176,423,583.28, and a 1-week fund flow of $36,303,700.47. It also has one of the most reasonable net expense ratios on this list at .1%.

Technology Select Sector SPDR Fund (XLK)

The third and final Unattractive ETF is the Technology Select Sector SPDR Fund. This ETF seeks to track the performance of the technology and telecom sector of the S&P 500. It has $35,497,259,380.95 AUM, which is very comparable to the Vanguard Information Technology ETF’s AUM. It has seen negative fund flows over the last 90-days with a fund flow of $-364,629,181.60, and positive fund flows over the last 30-days and 1-week with fund flows of $887,523,629.30 and $598,737,956.95 respectively. Its net expense ratio of .13% is also considerably cheaper than other tech ETFs.

Top Short

iShares US Technology ETF (IYW)

The iShares US Technology ETF IYW is our lone Top Short ETF for this month. This ETF aims to give investors exposure to an index of US based tech stocks focused on electronics, computer software and hardware, and informational technology. Not surprisingly, its Top 5 holdings are Apple, Microsoft, Facebook, Nvidia, and Alphabet. The fund is on the smaller side and reports $6,159,105,300.00 AUM. Its fund flows over the last 90-days and 30-days have been consistently negative with flows of $-286,362,825.00 and $-30,497,080.00 respectively. It has a positive 1-week fund flow however with a fund flow of $30,934,030.00. Its net expense ratio of 0.44% is also fairly expensive.

Unrated

Fidelity MSCI Information Technology Index ETF (FTEC)

The first interesting unrated Top Tech ETF is the Fidelity MSCI Information Technology Index ETF MSCI . This ETF seeks to track the performance of the MSCI USA IMI Information Technology Index which roughly represents the performance of the entire tech sector in the US equity market. It is on the smaller side with $4,639,794,766.10 AUM. The ETF has seen mixed fund flows, with a positive 90-day fund flow of $47,368,036.90, and a negative 30-day fund flow of $-28,003,465.55, and a negative 1-week fund flow of $-13,477,686.60. With a net expense ratio of 0.084%, this is also the cheapest ETF on the list.  

First Trust Dow Jones Internet Index Fund (FDN)

The second unrated ETF for this month is the First Trust Dow Jones Internet Index Fund. Through its holdings, this ETF represents the largest and most actively traded U.S. internet stocks. Their top 5 holdings, which make up nearly 30% of the ETF, include Amazon AMZN , Facebook, Salesforce CRM , Netfli NFLX x, and PayPal. It is on the smaller side based on its AUM of $10,011,750,381.40. It has also seen mixed fund flows, with a 90-day fund flow of $226,022,500.00, 30-day fund flow of $-136,611,500.00, and 1-week fund flow of $-28,017,000.00. Its net expense ratio of .53% is also quite expensive.

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