Two High-Tech ETFs That Are Still Great Bargains

Recently, the Nasdaq Composite index showed signs of recovery and is currently only 9% down from its recent highs, suggesting that it is no longer officially in correction territory. This means that for savvy investors looking for opportunities, there are still several exchange-traded funds (ETFs) available at attractive prices for long-term holding.

This article highlights two promising ETFs focused on technology stocks, one is a passive index fund, and the other is an actively managed fund. Both are still trading more than 10% lower than their peaks.

A Leading Technology Index Fund

The Vanguard Information Technology ETF (VGT -2.36%) stands out as an affordable option offered by Vanguard, known for its low-cost investment strategies. With an expense ratio of just 0.09%, it provides a cost-effective way to gain broad exposure to the technology sector. Despite the recent market uptick, this ETF remains over 11% below its peak in 2025.

This fund effectively tracks the overall information technology sector, which includes around 315 stocks. The ETF is notably dominated by some of the industry's biggest players, with its three largest holdings—Apple, Nvidia, and Microsoft—comprising 46% of the total assets. Other major tech companies such as Amazon.com, Alphabet (Google's parent company), and Tesla are not included in this ETF due to their classification outside the information technology sector. Nonetheless, investing in this ETF gives you access to critical tech trends at a significantly lower price than earlier this year.

Global Innovation with Cathie Wood's ETF

The Ark Innovation ETF (ARKK -4.54%) is another solid option, brought to you by renowned tech investor Cathie Wood's Ark Invest. Amidst some market volatility, this ETF is still priced about 21% below its February high, despite a recent rebound.

Unlike an index fund, this actively managed ETF involves portfolio managers making specific stock selections with the intent of outperforming a benchmark index. The Ark Innovation ETF includes around 36 innovative technology stocks, many of which are well-positioned for future growth despite facing challenges in the current market climate.

Key holdings within this ETF include companies such as Tesla, Roku, Roblox, Coinbase, and Palantir. Investors can also find a mix of major tech companies and promising small caps that Wood and her team forecast to have significant growth potential.

This ETF carries a 0.75% expense ratio, which is higher than your typical index fund but aligns with charges typical for actively managed funds. Personally, I hold another ETF from Cathie Wood, the Ark Autonomous Technology & Robotics ETF (ARKQ -3.12%), primarily for exposure to AI. However, I find the Ark Innovation ETF to be a compelling choice for those seeking leading tech stocks at much lower prices, so it remains on my watch list.

Evaluating Investment Potential

Both of these ETFs are appealing options for long-term investors. However, it is crucial to note that the analysis is made with a long-term outlook, and predicting market movements in the short term is challenging. There might be further market fluctuations that could lower their prices even more. Still, for investors focused on long-term gains, this is an excellent time to explore these opportunities further.

ETFs, Investing, Technology