6 Tech ETFs That Are Up At Least 40% in 2024

This year has seen a tech boom thanks to the continuing growth and innovations in the artificial intelligence (AI) space. The tech-heavy ETF Invesco QQQ Trust QQQ has jumped 28.4% this year (as of Dec. 20, 2024). And why not? The Magnificent Seven stocks — Apple, Microsoft, Meta, Alphabet, Amazon, NVIDIA and Tesla — shares have collectively seen a surge of 71.1% this year (as evident from the return of Roundhill Magnificent Seven ETF MAGS).

But this is not the end. There are several tech players, mainly in the chip industry, that have seen a boom in share price due to AI euphoria. Broadcom AVGO stock is up 103% this year while Palantir Technologies PLTR stock has skyrocketed 385.8%. The rally in the tech space mainly revolved around AI and crypto.

Still, we highlight below a few tech-based exchange-traded fund (ETF) areas that have gained more than 40% this year.

Top-Performing Tech ETF Areas in Focus

Cryptocurrency & Digital Innovation

First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT – Up 95.7%

The year 2024 can easily be attributed to the cryptocurrency boom. The launch of bitcoin ETFs earlier in the year mainly drove the rally. At the end of the year, Bitcoin hit the 100,000 mark on Trump’s crypto-friendly agenda.

Trump’s proposed Bitcoin reserve and domestic mining focusboosted the entire crypto industry in the ongoing fourth quarter. Added to this, BlackRock launched its ETF IBIT’s options on Nasdaq in November which have boosted crypto trading activity and prices (read: After Bitcoin & Ether, Are Ripple ETFs Underway?).

Tech Momentum

Invesco Dorsey Wright Technology Momentum ETF PTF – Up 53.6%

Since the year has been about an AI rally and an unprecedented boom in tech investing, tech momentum ETF PTF has surged. The Dorsey Wright Technology Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on U.S. exchanges.

Software takes half of the fund, followed by Semiconductor (12%) and Communications Equipment (11.37%). The Zacks Rank #1 (Strong Buy) ETF charges 60 bps in fees.

Quantum Computing

Defiance Quantum ETF QTUM – Up 52.5%

The quantum computing arena has been displaying remarkable growth in 2024, with advancements in hardware, software, and practical applications. Tech giants and startups are striving to expand the limits of qubit stability, scalability and error correction, making quantum systems more reliable. Industries like finance, healthcare, and logistics are exploring quantum algorithms for optimization and problem-solving.

A new report from The Quantum Insider forecasts that quantum computing will contribute $1 trillion in value creation by 2035, as quoted on quantuminsider.com. Quantum computing vendors expect to generate $50 billion in revenue by 2035.

Fintech

Ark Fintech Innovation ETF ARKF – Up 46.3%

The solid return signals strong growth potential within the fintech space. ARKF's concentration in the top holdings reflects its strategic bets on innovative firms like Coinbase and Shopify. This explains that the fund benefited from the crypto boom. Amidst rapid digitalization and evolving consumer preferences, ARK Investment Management identifies fintech disruptors set to benefit from long-term sector trends.

Cloud Computing

First Trust Cloud Computing ETF SKYY – Up 44.6%

Cloud computing has seen significant growth in 2024, driven by the widespread adoption of AI, edge computing, and multi-cloud strategies. Enterprises are increasingly relying on cloud solutions for scalability and cost efficiency. Emerging technologies like generative AI, 5G integration, and serverless computing will further accelerate cloud adoption across industries. Cloud computing is expected to grow at a compound annual growth rate (CAGR) of 16.5% from 2024 to 2032, per fortunebusinessinsights.com.

Semiconductor

VanEck Semiconductor ETF SMH – Up 43.6%

There has been immense growth in the chip or semiconductor industry this year. The chip industry is experiencing a significant boom, fueled by surging demand for advanced semiconductors in AI, 5G, electric vehicles and cloud computing. Governments and companies globally are investing heavily in semiconductor manufacturing to strengthen supply chains and cut down dependence on key regions like East Asia.

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