Alternatively, the First Trust Technology AlphaDEX Fund (NYSEArca: FXL) follows a smart-beta index that overweights companies with strong fundamental attributes, such as 12 month price appreciation, return on assets, book value to price and cash flow to price ratios, and includes a basket of small- to large-cap companies.
Diving deeper into the tech sector, investors can gain exposure to more targeted sub-sector ETFs. For instance, the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) and PowerShares NASDAQ Internet Portfolio (NasdaqGM: PNQI) both focus on Internet-related businesses, such as Facebook (NasdaqGS: FB), Amazon (NasdaqGS: AMZN), eBay (NasdaqGS: EBAY) and GOOG. Due to their more specialized strategies, FDN and PNQI come with a more expensive 0.60% expense ratio, compared to broad-based ETFs.
Additionally, some tech stocks offer dividends, and the First Trust NASDAQ Technology Dividend Index Fund (NasdaqGS: TDIV) provides targeted exposure to tech names that have a consistent history of paying dividends. TDIV shows a 12-month yield of 2.4%. [Digital Dividends in an ETF]
For more information on the tech sector, visit our technology category.