The technology space delivered fantastic returns for investors over the course of the 2010s. If the early part of this decade is any indication, tech will continue to be a reliable source of growth. Indeed, the COVID-19 pandemic has accelerated digital transformations across a broad variety of sectors. Today, I want to look at three tech-oriented exchange-traded funds (ETFs) that are worth your attention in the 2020s.
Here’s a great way for investors to seek exposure to the healthcare tech space
Health care was one the only spaces that was able to keep pace with tech in the 2010s. The pandemic has put the spotlight on health care, and investors should take notice. Indeed, a recent report from market researcher Facts&Factors projected that the Healthcare IT Market would deliver a CAGR of 20% through 2026.
Investors who want in on this space should consider iShares Global Healthcare ETF (TSX: XHC). This ETF seeks exposure to equities of issuers in the healthcare sector of the global economy. Shares of this fund have climbed 17% in 2021 as of close on November 3. It is up 20% year over year.
This Canadian dollar hedged ETF boasts identical holdings to iShares Global Healthcare ETF. These include top healthcare companies like Johnson & Johnson, UnitedHealth Group, and Pfizer. Revenues at this companies have ballooned in the face of the pandemic. This is a fund you can trust for the long haul.
I’m targeting this tech ETF focused on cybersecurity
In recent years, investors have borne witness to some of the most damaging cyberattacks and data breaches in history. For example, look to the data breach at Equifax. This exposed the private information of over 150 million American and British citizens. At the time of this writing, the data breach has cost the company nearly $2 billion.
Back in February 2020, I’d discussed how investors could seek exposure to the cybersecurity space. Damaging data breaches like the one we saw at Equifax will encourage further investment in security in the public and private sphere. That is why I’m looking to target a tech ETF like Evolve Cyber Security ETF (TSX: CYBR).
This ETF invests primarily in equity securities of companies located domestically or internationally that are involved in cybersecurity industry through hardware and software development. Shares of this fund have climbed 15% in the year-to-date period. Meanwhile, it is up 37% from the prior year.
A tech ETF that will rise along with automation
This past March, I’d looked at TSX stocks that were worth holding for years and decades to come. One of those stocks was focused on factory automation. The acceleration of automation is one of the reasons I’m looking to a tech ETF like Horizons Robotics and Automation ETF (TSX: RBOT).
The Horizons Robotics and Automation ETF aims to provide exposure to companies that are involved in the development of robotics and/or artificial intelligence. Its shares are up 17% in the year-to-date period. The ETF has climbed 32% from the previous year.
