High-Tech ETFs Remain Undervalued Despite Recent Gains

Wednesday 26th of March 2025 22:23:00

Two Wonderful High-Tech ETFs That Still Look Like Bargains

March 26, 2025

Investors looking to ride the wave of innovation in the high-tech sector have a plethora of exchange-traded fund (ETF) options to choose from. However, not all high-tech ETFs are created equal. Two ETFs that still look like bargains are the VanEck Vectors Semi conductor ETF (SMH) and the Invesco QQQ ETF (QQQ).

The VanEck Vectors Semiconductor ETF (SMH) is a popular choice for investors looking to gain exposure to the semiconductor industry. With a market capitalization-weighted approach, SMH tracks the performance of the Philadelphia Semiconductor Index. The ETF has a Morningstar Analyst Rating of Silver, indicating that it is a good option for investors seeking exposure to the semiconductor sector.

One of the key reasons why SMH is still a bargain is its relatively low price-to-earnings (P/E) ratio. With a P/E ratio of around 20, SMH is trading at a discount to the broader market. Additionally, the ETF has a strong track record of performance, with a five-year annualized return of around 18%.

The Invesco QQQ ETF (QQQ) is another high-tech ETF that still looks like a bargain. QQQ tracks the performance of the NASDAQ-100 Index, which is a widely followed benchmark for the technology sector. With a Morningstar Analyst Rating of Silver, QQQ is a good option for investors seeking exposure to the technology sector.

One of the key reasons why QQQ is still a bargain is its relatively low price-to-earnings (P/E) ratio. With a P/E ratio of around 25, QQQ is trading at a discount to the broader market. Additionally, the ETF has a strong track record of performance, with a five-year annualized return of around 15%.

In conclusion, the VanEck Vectors Semiconductor ETF (SMH) and the Invesco QQQ ETF (QQQ) are two high-tech ETFs that still look like bargains. With their relatively low price-to-earnings (P/E) ratios and strong track records of performance, these ETFs are good options for investors seeking exposure to the high-tech sector.