2 Tech Leadership ETFs I Like Much Better Than the SPY
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The tech sector has been far choppier in recent weeks, and the new year might see more of the same as volatility continues working its way through parts of the tech scene. Notably, the software stocks took a hit on the chin on the first trading day of the year. And while the risks of correction are higher to start 2026, given the extended valuations, especially in the semiconductor scene, I still think the big tech leaders are worth sticking with for the long run.
There are going to be painful plunges or perhaps even a year-long bear market to get through, but for those who recognize the long-term potential of the AI revolution, playing the long game and not giving in to fears might be a smart game plan, provided one can handle amplified volatility.
In this piece, we’ll check in on two tech leadership ETFs that offer far more growth than the S&P 500. If AI innovators get monetization right, perhaps the following pair could outshine the likes of the SPDR S&P ETF (NYSEARCA:SPY) in yet another year. Either way, I like what the following ETFs bring to the table, especially for portfolios that aren’t heavy enough in the tech sector. As always, mind the bumps in the road when investing in the growthier, but choppier tech leadership ETFs.
JPMorgan U.S. Tech Leaders ETF
JPMorgan U.S. Tech Leaders ETF (NASDAQ:JTEK) might be one of the newer tech ETFs on the block after launching back in 2023. However, it’s been an impressive run since inception, with shares of the Tech Leader ETF rising more than 77%.
So, what’s so special about JPMorgan’s tech leadership ETF? It’s an active way to bet on the heavyweights in the American technology sector. Undoubtedly, if 2026 is a year that rewards stock-picking over simple indexing (think incremental buying of the S&P 500), the JPMorgan U.S. Teach Leaders ETF might have the wind at its back.
Not everyone will feel comfortable paying a 0.65% net expense ratio, but if you’re a believer in active over passive, the fee seems more than fair, especially as the portfolio managers seek to invest for the long term. Just have a look at the top holdings and their weights, which will differ from many of the tech ETFs you’ve come across.
Undoubtedly, you’ll gain some Magnificent Seven exposure, but with smaller weightings. Perhaps most surprisingly, the ETF has a good amount of exposure to some sub-$120 billion market cap firms capable of even greater growth. Think Robinhood Markets (NASDAQ:HOOD), Snowflake (NYSE:SNOW), and Take-Two Interactive Software (NASDAQ:TTWO). In short, the ETF is well-balanced, offering far more than just heaviness in the market’s most obvious tech stars.
iShares Future Exponential Technologies ETF
iShares Future Exponential Technologies ETF (NASDAQ:XT) is another high-growth tech ETF fit for investors willing to look beyond the Nasdaq 100 or S&P 500 for growth. The ETF seeks to bet on innovation leaders across the world, making it a great fit for tech investors looking for a bit of international diversification outside of the U.S. market. Of course, a vast majority (more than 70%) of the fund is invested in U.S. names, so it’s not exactly the best bet for investors looking for ex-U.S. exposure.
The 0.46% expense ratio is modest, and the weightings of the ETF are quite well-balanced with no single holding contributing more than 5% of the overall fund (same deal with the JPMorgan U.S. Tech Leaders ETF). Perhaps the most notable trait of the ETF is its exposure to the healthcare names, which makes the ETF a good mix of traditional tech and biotech.