3 Tech ETFs To Load Up on Before 2026
As we come to the close of 2025, tech stocks are gaining pace, and they’ve remained one of the best performing in the industry. The stock market was driven higher by the strong demand for artificial intelligence (AI), which led…
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As we come to the close of 2025, tech stocks are gaining pace, and they’ve remained one of the best performing in the industry. 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.
iShares Expanded Tech-Software Sector ETF
The iShares Expanded Tech-Software Sector ETF tracks the performance of the index composed of North American equities in the software industry. The fund invests in a lot of high-quality companies that have shown strong revenue growth and solid margins.
The fund holds 115 stocks and has an expense ratio of 0.39%. While it is slightly on the higher side, IGV has a portfolio of the biggest tech giants. Its top 10 holdings include Microsoft Corporation, Palantir Technologies, Oracle Corporation, Salesforce, AppLovin, ServiceNow, and Adobe. It has the highest allocation in Palantir Technologies and Microsoft Corporation.
The top 10 holdings form 62% of the fund. Sector-wise, the fund invests heavily in application software (62.78%), followed by systems software (33.45%) and interactive home (2.82%).
IGV is an investment in enterprise automation, cloud computing, cybersecurity, and AI productivity tools. With this ETF, you’re investing in the software segment of the industry. The fund has generated a total return of 28.64% in one year and 31.95% in 3 years. IGV gained 8.17% in 2025 and is exchanging hands for $108.07. The software industry has lagged in 2025, and we could see a significant improvement in the coming year. IGV is an excellent way to buy the dip in the software industry.
Vanguard Information Technology ETF
If you think that the U.S. economy will continue to be driven by the tech sector, the Vanguard Information Technology ETF could be an ideal bet. It is exactly what a growth investor is looking for. The fund focuses on a little over 300 companies and includes all the mega-cap names. VGT is focused on top-quality mega-cap tech giants that have shown impressive growth in 2025.
It has the highest allocation to the semiconductor industry at 32.10%, followed by systems software at 18.20% and hardware storage at 17.70%. The top 10 holdings of the fund include Nvidia, Apple, Microsoft, Palantir Technologies, Advanced Micro Devices, Oracle, and Broadcom. It has the highest allocation of 16.61% in Nvidia, followed by 15.31% in Apple. The fund has $130.0 billion in assets under management.
VGT has an expense ratio of 0.09% and a yield of 0.38%. Since tech-focused ETFs are focused on a specific industry, they carry higher risk but also a high payoff. Looking at the tech sector today, VGT has a high return potential. The fund has generated a cumulative 3-year return of 120.57% and a 5-year return of 132.26%.
The fund has gained 23.13% so far in 2025 and is exchanging hands for $765.03.
Invesco QQQ Trust
While the Invesco QQQ isn’t a pure-play tech ETF, it continues to remain tech heavy with over 64% allocation to the sector. It is a less risky alternative as compared to the other two funds mentioned here. The fund has $408 billion in assets under management. It has generated a cumulative 5-year return of 113% and a 10-year return of 486%. This is an unbelievable result and shows a double-digit return throughout the decade. QQQ tracks the performance of the Nasdaq-100 Index and holds 101 stocks.
Besides the allocation in the tech sector, QQQ allocates 18.29% to the consumer discretionary segment, followed by 4.21% to the healthcare segment. Its top 10 holdings constitute about 50% of the fund and include Nvidia, Apple, Microsoft Corporation, Amazon, Tesla, and Meta Platforms. It has an expense ratio of 0.18%.
The ETF has gained 21.93% so far in 2025 and is exchanging hands for $622.11. This ETF is home to some of the biggest and the best U.S. tech companies. Its top 10 holdings are all AI plays, and the fund has generated impressive returns this year. Since it holds 100 of the best tech stocks, there’s less diversification than the S&P 500, and it has outperformed the S&P 500.
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Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
