Exchange-Traded Funds (ETFs) are a vital foundation to any tech portfolio. In one fell swoop, you can invest in broad tech sectors without having to pick the winners from the losers.
Data compiled by Morningstar shows that so far this year, the total value of global ETFs comes in at nearly $9 trillion.
To put that in context, by mid-August, net inflows hit $736.5 billion, nearly beating the total for all of 2020.
Even my daughter’s 22-year-old friends are aware of the value of ETFs. So, if want to know about some great tech ETFs, you’ve come to the right place.
Today, I will give you the detail of three tech-savvy ETFs to own for the long haul…
With the ongoing shortage, it’s been “chips this” and “semiconductors that.” Believe me, I understand if you’re burnt out, but we’re here to make money on this $430 billion industry.
Today, I’m going to tell you about a tech firm that’s virtually an ETF because of its wide-ranging services. And unlike the chip manufacturers we’ve discussed before, they’re fab-less, or factory-less. In other words, they operate on the highly lucrative theoretical side of the chip industry and save millions on overhead.
Think of electronics as like a great rock band. All the players have to play the right parts at the right time and this is what the company does. Keeping with this metaphor, SITM is basically Jerry Garcia. No flash. Just pure rock and roll.
Based on their own humbly conservative estimate, SiTime (nasdaq: SITM) has a total market worth of $8 billion. Their chips can be found in everything from smartphones to missiles. Their rather arcane solutions like network synchronizers, oscillators and clock generators have applications in platforms like Internet of Things, 5G, automated driving, high-end missiles and industrial applications. I’m talking about 250 distinct applications and they’re looking to expand that number to 500 and even 1,000.
Most recently, SITM saw a stunning 429% quarterly EPS growth and are projecting profit gains of 400% on the back of a 100% increase in sales. Again, that’s coming from the highly prudent analysts at SiTime.