3 Best Technology ETFs with More Than 20% Upside

Despite ongoing volatility amid geopolitical concerns, investors continue to look for attractive investment opportunities in the technology sector, given its robust long-term growth potential. Instead of directly investing in individual stocks, investors can consider technology exchange-traded funds (ETFs), which reduce risk by diversifying across various stocks. Tech ETFs offer exposure to stocks in several attractive growth areas like artificial intelligence (AI), cloud computing, quantum computing, blockchain, semiconductors, and cybersecurity.

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Here, we will look at three technology ETFs – Dan IVES Wedbush AI Revolution ETF IVES +0.16% ▲ , Invesco PHLX Semiconductor ETF SOXQ +2.03% ▲ , and First Trust Dow Jones Internet Index Fund FDN +0.03% ▲ – all with a Strong Buy rating and more than 20% upside potential.

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

Dan IVES Wedbush AI Revolution ETF (IVES)

The IVES ETF seeks to capitalize on the artificial intelligence (AI) boom by investing in companies that are at the cutting edge of AI technology.

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, IVES scores a Strong Buy rating. The average price target of $40.18 for the IVES ETF implies about 32% upside potential.

Currently, the top three holdings of the IVES ETF are Amazon AMZN +0.54% ▲ , Microsoft MSFT -0.87% ▼ , and Broadcom AVGO +0.25% ▲ .

Invesco PHLX Semiconductor ETF (SOXQ)

The SOXQ ETF tracks the PHLX Semiconductor Sector Index and offers exposure to stocks of companies engaged in the semiconductor business, including products such as memory chips, microprocessors, integrated circuits, and related equipment. The SOXQ ETF has risen 77% over the past year, driven by solid demand for semiconductors amid the ongoing AI boom.

Based on a weighted average of analyst ratings on its holdings, SOXQ scores a Strong Buy rating. The average price target of $77.75 for the SOXQ ETF implies about 24% upside potential.

Currently, the top three holdings of the SOXQ ETF are Nvidia NVDA +1.44% ▲ , Broadcom, and Advanced Micro Devices AMD +0.77% ▲ .

First Trust Dow Jones Internet Index Fund (FDN)

The FDN tracks the Dow Jones Internet Composite Index and offers exposure to the stocks of companies across e-commerce, online services, social media, and cloud computing.

Based on a weighted average of analyst ratings on its holdings, FDN scores a Strong Buy rating. The average price target of $315.61 for the FDN ETF implies about 28% upside potential.

Currently, the top three holdings of the FDN ETF are Meta Platforms META +1.45% ▲ , Amazon, and Netflix NFLX -1.28% ▼ .

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