While potential interest rate hikes next year could mar the tech industry’s growth, the continued digital transformation makes the industry’s long-term prospects bright. So, investors looking to capitalize on the industry’s growth in a relatively less risky way could bet on popular Tech ETFs such as the Vanguard Information Technology Index Fund ETF Shares (VGT), First Trust Dow Jones Internet Index Fund (FDN), Global X Cloud Computing ETF (CLOU), and Innovator ETFs Trust - Innovator IBD 50 ETF (FFTY).The tech-heavy Nasdaq Composite fell 0.2% to finish at 14,512.44 on September 29, after witnessing its worst day since March, amid a spike in bond yields. However, the composite is still up 14.2% year-to-date. In addition, Nasdaq futures saw 0.3% percentage gains this morning as rising bond yields took a pause. Also, major stocks are expected to receive a boost as Senate Majority Leader Chuck Schumer said that the chamber had reached a deal to avoid a government shutdown this week.
Though the Federal Reserve’s intention to raise the benchmark interest rates next year could mar the tech industry’s growth, the industry is well-positioned for solid long-term growth as businesses aggressively adopt advanced technologies to stay ahead of the race in this digital era.
While it is challenging to select the best stock in the crowded tech space considering the possibility of a sell-off in the near term, investors looking to capitalize on the industry’s growth in a less risky way could bet on quality ETFs exposed to tech stocks. To that end, Vanguard Information Technology Index Fund ETF Shares (VGT), First Trust Dow Jones Internet Index Fund (FDN), Global X Cloud Computing ETF (CLOU), and Innovator ETFs Trust - Innovator IBD 50 ETF (FFTY) could be solid bets now.