3 Best Technology ETFs with Attractive Upside Potential

2026-02-28 17:32:26

Despite ongoing concerns about valuation and potential disruption in some sectors from artificial intelligence, several investors and analysts remain optimistic about technology stocks, citing their attractive long-term growth potential relative to many other sectors.

Claim 50% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Buying individual tech stocks carries company-specific risks. Instead, investors can consider technology exchange-traded funds (ETFs), which help reduce risk by spreading money across multiple companies. Here, we will look at three technology ETFs – Vanguard Information Technology ETF VGT -1.82% ▼ , JPMorgan U.S. Tech Leaders ETF JTEK -0.91% ▼ , and iShares Semiconductor ETF SOXX -1.26% ▼ that are rated Strong Buy and have at least 20% upside potential.

Using TipRanks’ Stock Comparison Tool, let’s see how these ETFs stack against each other.

Vanguard Information Technology ETF (VGT)

The VGT ETF tracks the MSCI US IMI 25/50 Information Technology Index and provides exposure to stocks of companies that serve the electronics and computer industries or manufacture products based on the latest applied science.

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, VGT scores a Strong Buy rating. The average price target of $1,013 for the VGT ETF implies about 39.4% upside potential.

Currently, the top three holdings of the VGT ETF are Nvidia NVDA -4.16% ▼ , Apple AAPL -3.21% ▼ , and Microsoft MSFT -2.24% ▼ .

JPMorgan U.S. Tech Leaders ETF (JTEK)

The JTEK ETF offers exposure to innovative technology companies with underappreciated growth opportunities. It invests in leading tech companies that are at the forefront of technological advancements and digital transformation.

Based on a weighted average of analyst ratings on its holdings, JTEK scores a Strong Buy rating. The average price target of $107.38 for the JTEK ETF implies 27.5% upside potential.

Currently, the top three holdings of the JTEK ETF are Alphabet GOOG +1.39% ▲ , Lam Research LRCX -2.17% ▼ , and Ciena Corporation CIEN +2.21% ▲ .

iShares Semiconductor ETF (SOXX)

The SOXX ETF tracks the NYSE Semiconductor Index and offers exposure to U.S. companies that design, manufacture, and distribute semiconductors. Interestingly, SOXX ETF has rallied about 72% over the past year, driven by the soaring global demand for semiconductors in key growth areas, including AI, 5G technology, and the Internet of Things (IoT).

Based on a weighted average of analyst ratings on its holdings, JTEK scores a Strong Buy rating. The average price target of $436.29 for the SOXX ETF implies about 24% upside potential.

Currently, the top three holdings of the SOXX ETF are Micron Technology MU -0.77% ▼ , Applied Materials AMAT -0.91% ▼ , and Nvidia.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.