Top NASDAQ exchange-traded funds (ETFs) provide investors with exposure primarily to established and emerging technology companies, but also to names in the consumer discretionary and healthcare sectors. Given that many smaller technology companies carry more investment risk, NASDAQ ETFs offer a solution to diversify by investing in a portfolio of stocks rather than relying on the fortunes of a particular company.

Below, we examine three top performing NASDAQ ETFs, excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). The first fund provides exposure to the broader index, while the other two funds target specific sectors within the Nasdaq. All data below is as of Dec. 14.

Invesco NASDAQ Internet ETF (PNQI)

• Performance Over One-Year: 49%
• Expense Ratio: 0.60%
• Annual Dividend Yield: N/A
• Three-Month Average Daily Volume: 86,255
• Assets Under Management: $665 million
• Inception Date: June, 12 2008
• Issuer: NASDAQ OMX Group, Inc.

The ETF has an investment objective to track the performance of the NASDAQ CTA Internet Index – a benchmark made up of a broad group of U.S.-listed internet companies engaged in software, search engines, web hosting, and online commerce.

The top three holdings of PNQI includes Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), Alphabet Inc. (GOOG) which account for 7.94%, 7.92%, and 7.73% of the fund, respectively.

First Trust NASDAQ-100-Technology Sector Index Fund (QTEC)

• Performance Over One-Year: 49%
• Expense Ratio: 0.57%
• Annual Dividend Yield: 0.88%
• Three-Month Average Daily Volume: 147,932
• Assets Under Management: $3.3 billion
• Inception Date: April 19, 2006
• Issuer: First Trust

QTEC seeks to track the price and yield performance of the NASDAQ-100 Technology Index, a benchmark specifically targeting technology companies listed on the Nasdaq stock exchange. It rebalances four times annually in March, June, September, and December.

The fund, which equal weights large-cap technology stocks, holds sector bellwether names, such as Apple, Meta Platforms, Inc. (META), and NVIDIA Corporation (NVDA).

Invesco PHLX Semiconductor ETF (SOXQ)

• Performance Over One-Year: 43%
• Expense Ratio: 0.19%
• Annual Dividend Yield: 0.8%
• Three-Month Average Daily Volume: 58,220
• Assets Under Management: $169 million
• Inception Date: June, 11 2021
• Issuer: Invesco

SOXQ tracks the PHLX Semicondutor Sector Index which is composed of 30 of largest semiconductor manufacturers, and over 90% of the fund is comprised of companies located in the United States.

The top three holdings of SOXQ include Broadcom Inc. (AVGO), Advanced Micro Devices Inc. (AMD), and QUALCOMM Inc. (QCOM) which amount to 8.82%, 8.30%, and 7.87% of the fund, respectively.

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As of the date this article was written, the author does not own any of the above ETFs.