2 Tech ETFs for Nearly Every Corner of the Digital Economy: From Semiconductors to Robotics

The digital revolution has shaped nearly every area of our lives, from how we watch movies to how we manufacture goods and communicate. If you're seeking exposure to this metamorphic revolution, tech-focused exchange-traded funds (ETFs) may be worth adding to your portfolio. Tech ETFs offer a convenient way to own stock in multiple innovative sectors without putting all your eggs in one basket.

Here are two leading tech ETFs and why they're worth a much closer look.

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Vanguard Information Technology ETF (VGT +1.77%)

Investing in VGT means having a gateway to the entire technology sector. This ETF tracks the **MSCI US Investable Market Information Technology **index, encompassing large-, mid-, and small-cap technology stocks. This approach captures everything from well-established tech giants to pioneering tech companies. With 316 holdings, the big players are all there, including Nvidia, Apple, Microsoft, and Broadcom.

While owning stock in these industry giants is nice, VGT also gets you in on the ground floor with the latest emerging titans -- companies that may not be household names just yet, but are positioned to take off.

True to Vanguard's philosophy, VGT's fees are exceptionally low at 0.09%. VGT may be ideal for you if:

  • You seek broad exposure to the tech sector without betting on specific subsectors.
  • You want access to current industry titans with proven track records.
  • Your portfolio can benefit from exposure to software, hardware, IT services, and semiconductors through a single fund.

ROBO Global Robotics & Automation ETF (ROBO 0.32%)

While there's a place for cheap tech stocks in a balanced portfolio, there's something to be said for bundling the best and brightest in a single ETF. ROBO focuses on stocks that are expected to drive the automation of the future.

ROBO takes a global approach, investing in innovative companies, regardless of where they originate. This allows ROBO to capture leaders from North America, Europe, and Japan. With 78 current holdings, the common denominator is robotics and automation. Within those holdings, you'll find everything from AI software providers to healthcare robotics and surgical systems.

ROBO is laser-focused on the companies pioneering next-generation technology, and it may be right for you if:

  • You seek exposure to the intersection of AI, robotics, and automation.
  • You want to diversify beyond U.S.-centric technology.
  • You're comfortable with a growth-oriented, but more speculative, investment.
  • You have the time to wait as the robotics market matures.

The automation revolution may be in its early stages, but it offers vast potential as these technologies become more efficient and affordable.

Technology is here to stay. It all comes down to determining where your investment dollars have the greatest opportunity to grow.

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