Technology ETF: On-Going Fund Gains From the Never-Ending Tech Cycle?

If you are interested in accessing a popular sector of the investment market, you should consider a technology ETF. This is going to be an investment that can result in exposure to companies involved with the Internet; computer hardware and software; telecommunications; and even semiconductors.

As we saw in 2009/2010 with the financial sector, no market segment is 100% protected from downturns and that includes the technology space. In fact, years before the financial meltdown there was a technology meltdown with many sure-bets falling apart. Despite the risks, one could argue that no other industry is positioned for as much innovation and therefore growth as technology.

Be aware that many technology ETFs have another layer of specialization so don't assume that what you're buying will automatically cover everything from software to semiconductors.

Some broad US-based options include iShares Goldman Sachs Software Index (IGV), iShares Dow Jones U.S. Technology Sector Index Fund (IYW), and Vanguard Information Technology ETF (INT). If you're looking for more global exposure, look into the iShares S&P Global Technology Sector Index Fund (IXN). My preference is to start broad and if the weightings are somehow out of whack, then consider more specific options.

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