Emerging Tech Market ETFs to Watch in 2017

This article highlights top technology sector ETFs to watch in 2017, focusing on innovative and disruptive companies. It covers ETFs like Ark Innovation, Global X Social Media, NASDAQ Internet, and IoT-focused ETFs, emphasizing their holdings, performance, and investment strategies. Ideal for investors seeking high-growth tech funds, these ETFs provide diverse exposure to emerging trends in technology and social media. The article offers insights into opportunities within the dynamic tech ETF landscape, helping investors make informed decisions.

Emerging Tech Market ETFs to Watch in 2017

The technology sector has shown remarkable growth over the past year, outperforming other S&P categories with nearly 9.5% gains, while the S&P 500 rose by 5.3%. As financial reforms foster a comeback in the financial sector, investors are shifting focus toward innovative tech companies with growth potential that are less impacted by regulatory or interest rate changes. While industry giants have soared, smaller ETFs with niche focuses are gaining popularity. Here are some top tech ETFs to consider in 2017:

Ark Innovation ETF
This actively-managed fund targets innovative tech firms involved in web development, genomics, and industrial tech, with a focus on disruptive breakthroughs. Its holdings include Amazon, Stratasys, and Tesla. The ETF has an expense ratio of 0.75% and manages $19 million in assets, indicating a higher risk appetite. Since launching over two years ago, it has delivered approximately 22% returns.

Global X Social Media ETF
This ETF provides investment exposure to leading social media platforms worldwide. Major holdings feature Facebook, which performed strongly during the year. With $89 million in assets under management, about half of its holdings are international, mainly in Japan (9%) and China (27%). The robust growth of Chinese tech companies has contributed to its 15% increase in 2017. It charges a 0.65% expense ratio.

PowerShares NASDAQ Internet Portfolio
Covering top U.S.-listed internet giants like Amazon, Facebook, Netflix, and Priceline, this ETF holds $317 million in assets. Around 13% of its investments are international. It has appreciated over 14% this year and has an expense ratio of 0.60%.

Global X Internet of Things ETF (SNSR)
As the first ETF dedicated to the Internet of Things, SNSR invests in companies capitalizing on IoT expansion. It uses a modified market-weighting approach with a cap of 6% per stock, including firms like Mobileye and Skyworks. In 2017, its value increased by 14%, with $38 million in assets and an expense fee of 0.68%, representing an investment in cutting-edge technology.