3 Best Photonics ETFs for 2026 and How to Invest

Photonics refers to the use of light rather than electricity to transmit, process, and manipulate information. As AI models become larger and more computationally intensive, traditional copper interconnects are increasingly reaching bandwidth, latency, heat, and power consumption limits.

Photonic technologies, including optical networking, silicon photonics, and high-speed optical components, offer a potential solution by enabling the transmission of enormous amounts of data using light rather than electrical signals.

For investors, however, gaining exposure to this theme can be challenging. Many photonics companies are mid- or small-cap businesses, and several are headquartered outside North America. A photonics ETF provides a convenient way to invest across the value chain while reducing the company-specific risk of betting on a single winner.

That said, investors should still be prepared for concentrated portfolios, elevated volatility, and higher expense ratios than those typically found in broad-market index ETFs. Here’s what to know before investing in photonics ETFs and how the leading funds compare.