The Top Technology ETF to Put $2,000 Into Today

Is the Tech Sector Still a Smart Investment?

If you’re optimistic about technology’s future but hesitant to invest in tech funds due to their heavy concentration in a few stocks, your concerns are valid. Many technology ETFs are currently dominated by a handful of companies, making them riskier than they appear. Fortunately, there’s a straightforward approach that could enhance your portfolio and address this imbalance.

Let’s take a closer look.

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Why Most Tech ETFs Are Overly Concentrated

The main challenge facing technology ETFs today stems from the surge in artificial intelligence. This trend has disproportionately boosted the share prices of a select few companies. For example, Nvidia, Apple, and Microsoft together represent 43% of the Vanguard Information Technology ETF (NYSEMKT: VGT). If the AI boom fades, this ETF could experience a much larger decline than most investors expect from a fund holding 320 stocks.

This issue isn’t limited to VGT. Nearly 40% of the State Street Technology Select Sector SPDR ETF (NYSEMKT: XLK) is invested in the same trio. Including Broadcom and Micron Technology pushes the concentration to almost half the fund’s value. Even the Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100 and is designed to avoid such imbalances, now has its top 10 holdings making up over 47% of its total assets. This level of concentration is exactly what ETF investors typically try to avoid.

Despite these risks, technology stocks remain among the most attractive options for long-term growth.

An ETF Designed for Balance

So, what’s the answer—both now and for the future?

While it may not be as popular as QQQ, VGT, or XLK, the Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT: RSPT) was created specifically to address this issue.

As its name implies, this ETF holds the same 72 S&P 500 tech stocks as its cap-weighted counterparts, but it allocates equal weight to each. The fund rebalances quarterly to maintain this structure, buying or selling shares as needed.

Pros and Cons of Equal Weight Investing

This approach offers a clever fix to the concentration problem. However, it does come with trade-offs. During periods when a few tech stocks deliver extraordinary gains—like the past three years—the ETF reduces its exposure to these high-performing stocks, which has led to underperformance compared to more concentrated funds.

In more stable and evenly distributed markets, which may be on the horizon, this ETF can match or even outperform its peers by holding larger stakes in smaller companies that haven’t yet surged. Additionally, the equal-weight strategy can act defensively, locking in profits from leading stocks as they rise.

It’s worth considering as you plan your investment strategy.

Is Now the Time to Invest in the Invesco S&P 500 Equal Weight Technology ETF?

Before purchasing shares in the Invesco S&P 500 Equal Weight Technology ETF, keep this in mind:

The Motley Fool Stock Advisor team has recently identified their top 10 stock picks for investors right now—and the Invesco ETF didn’t make the list. The selected stocks are expected to deliver substantial returns in the coming years.

For example, when Netflix was recommended on December 17, 2004, a $1,000 investment would now be worth $513,407. Similarly, a $1,000 investment in Nvidia from April 15, 2005, would have grown to $1,123,237.

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*Stock Advisor performance as of March 17, 2026.

James Brumley does not own shares in any of the companies mentioned. The Motley Fool holds positions in Apple, Micron Technology, Microsoft, and Nvidia, and has a short position in Apple. The Motley Fool also recommends Broadcom. For more information, see the disclosure policy.

The Best Tech ETF to Invest $2,000 in Right Now was first published by The Motley Fool.