Two Exciting High-Tech ETFs That Offer Great Value Right Now

The Nasdaq Composite index has recently rebounded and is currently down by only 9% from its recent highs, which means it has escaped official correction territory, at least for now. For long-term investors looking for promising exchange-traded funds (ETFs), there are still some appealing bargains available.

This article presents two ETFs that focus on technology stocks, featuring one passive index fund and one actively managed fund, both of which are down more than 10% from their previous highs.

A Leading Technology Index Fund

The Vanguard Information Technology ETF (VGT -2.36%) is a low-cost index fund from Vanguard, an acclaimed fund provider. Its expense ratio is just 0.09%, making it one of the most economical options for broad exposure to the technology sector. Despite the recent market rebound, this fund remains over 11% below its peak price recorded in 2025.

This ETF tracks the performance of the information technology sector, often referred to simply as 'the tech sector.' It includes about 315 stocks and is significantly focused on some of the major players in the market, including top holdings like Apple, Nvidia, and Microsoft, which together account for 46% of the ETF’s assets.

Notably, some leading tech giants such as Amazon.com, Alphabet (the parent company of Google), and Tesla are not included, as they fall outside the traditional definition of the information technology sector. However, this ETF is an excellent way to gain exposure to pivotal tech trends at a lower cost compared to earlier this year.

Cathie Wood's Flagship ETF

The Ark Innovation ETF (ARKK -4.54%), managed by well-known tech investor Cathie Wood, is the largest ETF in her Ark Invest family. It continues to trade about 21% lower than its peak in February, despite some recovery in the market.

Unlike the Vanguard ETF, the Ark Innovation ETF is actively managed, meaning that portfolio managers, led by Cathie Wood, actively select stocks with the aim of outperforming a designated benchmark index. This ETF comprises around 36 high-quality tech stocks, many of which have faced downturns during recent market fluctuations but are considered to have significant growth potential.

Some notable holdings in this fund include Tesla, Roku, Roblox, Coinbase, and Palantir. In addition to these established names, the portfolio features several smaller companies that the team believes possess significant future potential.

This actively managed fund has an expense ratio of 0.75%, which is higher than that of typical index funds but aligns with the fees charged by other actively managed funds.

For full disclosure, I hold a different ETF from Cathie Wood's lineup, the Ark Autonomous Technology & Robotics ETF (ARKQ -3.12%), which I selected for its focus on AI initiatives. However, the Ark Innovation ETF is also an attractive option for those looking to invest in leading tech companies at discounted prices, and it is currently on my radar.

Two Exceptional Choices for Long-Term Investors

While both of these ETFs present appealing prospects at the moment, it's essential to approach them with a long-term investment strategy in mind. The short-term market volatility could affect both funds further in the weeks or months ahead. However, if you think about investment returns over several years, this could be an opportune time to consider these funds in more detail.

John Mackey, the former CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is also a member of The Motley Fool's board of directors. Matt Frankel holds positions in Amazon, Ark ETF Trust's Ark Autonomous Technology & Robotics ETF, and Roblox. The Motley Fool has recommendations for investments in Alphabet, Amazon, Apple, Coinbase Global, Microsoft, Nvidia, Palantir Technologies, Roblox, Roku, and Tesla. The Motley Fool discloses its investment policy accordingly.

ETFs, Investing, Technology