The Invesco QQQ Trust (QQQ) ETF is one of the most popular ETFs (Exchange Traded Funds) to gain exposure to tech stocks and lower risk through diversification. Thanks to the rally in shares of technology companies, the QQQ ETF has gained 33% year-to-date, outperforming the S&P 500 Index (SPX). While QQQ is an excellent pick for investors, the Technology Select Sector SPDR Fund (XLK) and the Vanguard Information Technology ETF (VGT) are equally attractive options to play the recovery in the technology sector.
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VGT and XLK ETFs have also risen by around 32% and 33% year-to-date, respectively, in comparison to the QQQ ETF.
While both VGT and XLK ETFs have also delivered market-beating returns, let’s check what analysts’ forecasts and price targets indicate.
Is VGT a Good Investment?
On TipRanks, the VGT ETF has an Outperform Smart Score of eight, indicating it could continue to beat the broader market averages. Further, based on the recommendations of 3,158 analysts giving stock forecasts for the holdings of VGT, the 12-month average price target of $451.48 implies 7.38% upside potential from current levels.
It sports a Moderate Buy consensus rating on TipRanks. Among the analysts providing ratings on VGT’s holdings, 62.22% have given a Buy rating, 33.41% have assigned a Hold rating, and 4.37% have given a Sell rating.
Is XLK a Good Buy Right Now?
XLK ETF carries an Outperform Smart Score of eight on TipRanks. According to the recommendations of 938 analysts giving stock forecasts for the holdings of XLK, the 12-month average price target of $175.67 implies 6.35% upside potential from current levels.
The XLK ETF has a Moderate Buy consensus rating on TipRanks. Among the analysts providing ratings on its holdings, 63.43% have given a Buy rating, 31.88% have assigned a Hold rating, and 4.69% have given a Sell rating.
Bottom Line
VGT and XLK ETFs have delivered returns similar to QQQ. Meanwhile, both of these ETFs have a lower expense ratio of 0.10% compared to QQQ’s 0.20%, which is positive.
Overall, all the ETFs have an Outperform Smart Score of eight and a Moderate Buy consensus rating, which makes them equally attractive investment options for investors looking to invest in tech stocks.
