2 Tech Leadership ETFs I Like Much Better Than the SPY

Core Viewpoint - The tech sector is experiencing increased volatility, particularly in software stocks, and while risks of correction are present, major tech leaders are still considered long-term investments [1][2]. Group 1: Market Trends - The tech sector has faced significant fluctuations recently, with software stocks notably declining on the first trading day of the year [1]. - There is a possibility of a bear market or sharp declines, but the long-term potential of AI is highlighted as a reason to remain invested [2]. Group 2: Investment Opportunities - Two tech leadership ETFs are discussed as potential outperformers compared to the S&P 500, particularly if AI monetization is successful [3]. - The JPMorgan U.S. Tech Leaders ETF has seen a remarkable rise of over 77% since its inception in 2023, indicating strong performance [4]. - The ETF focuses on major players in the American tech sector and may benefit from stock-picking strategies in 2026 [5]. - The iShares Future Exponential Technologies ETF targets global innovation leaders, with over 70% of its investments in U.S. companies, making it suitable for investors seeking growth beyond traditional indices [8]. Group 3: ETF Characteristics - The JPMorgan U.S. Tech Leaders ETF has a net expense ratio of 0.65%, which is considered reasonable for active management [6]. - The ETF includes exposure to smaller firms with market caps under $120 billion, such as Robinhood Markets and Snowflake, providing a balanced portfolio [7]. - The iShares Future Exponential Technologies ETF has a modest expense ratio of 0.46% and maintains a balanced weighting, with no single holding exceeding 5% of the fund [9].