Tech in 2023 (DALL·E)
After a horror 2022 in which the tech ladened Nasdaq ETF (NYSE code: QQQ) lost 33.2% 2023 has started great as the Nasdaq trades up 21.8%. The index is still some 20% off the highs of 16,765 from November 2021 – but looking better. A lot better.
Locally we have three US tech weighted ETFs and they’re having a great year with two, the 1nvest S&P500 IT ETF (JSE code: ETF5IT) +33.5%. This 1nvest ETF is my preferred tech ETF in that it is pure tech as it simple invests into the tech stocks from the S&P500 whereas even the Nasdaq has some non tech (albeit no financials).
The Satrix Nasdaq ETF (JSE code: STXNDQ) has added +30.3%, besting the index in US$ thanks to some rand weakness.
The Sygnia 4th Industrial Revolution ETF (JSE code: SYG4IR) is lagging up only 11.5% and still beating the local market with he Top40 index up just over 8% excluding dividends so far in 2023.
I added the Ark Innovation ETF (NYSE code: ARKK) in the chart below and it is also tech and only a little behind the Nasdaq as it’s gained 21.1% in 2023.
Tech ETFs YTD close 09 May 2023
Simon Brown
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.