The ALPS Disruptive Technologies ETF (DTEC A-) is a solid offering for consideration as growthier segments of the market take off again.
The disruptive tech ETF has increased 7.5% over the past five days and nearly 2% in the past one-month period. The fund is still trading below its previous highs, presenting an opportunity to buy in while prices remain low.
The fund covers ten different themes within the tech sector: healthcare innovation, the internet of things, clean energy and smart grid, cloud computing, data and analytics, fintech, robotics, and AI, cybersecurity, 3D printing, and mobile payments, all with a focus on disruptive technologies and innovation.
DTEC selects ten companies from each theme according to a proprietary model and equally weights each security, effectively giving each theme and each company equal representation. This methodology results in much more balanced exposure to the sector, which is notorious for being highly concentrated in just a few mega-cap names.
Adopting disruptive technologies has become the mainstay solution for companies to better compete and for countries to survive the increasingly unpredictable future better, ALPS wrote in a recent insight
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“From the global pandemic to the Russia/Ukraine war, to the increasing deglobalization of the world, we believe innovation and disruption are what will protect a company’s competitive advantage, a country’s national security, and the world’s changing climate going forward, which is why DTEC diversifies across ten disruptive technology themes set to help solve these precarious dynamics,” ALPS wrote.
Holdings in DTEC include Netflix Inc (NFLX), AutoStore Holdings (AUTO), HealthEquity Inc (HQY), ADT Inc (ADT), SAP SE (SAP), DexCom Inc (DXCM), Intuitive Surgical Inc (ISRG), Salesforce Inc (CRM), Snowflake Inc (SNOW), and Schneider Electric SE (SU), according to YCharts.
Other funds that offer exposure to technology stocks include the ProShares S&P Technology Dividend Aristocrats ETF (TDV A), the First Trust NASDAQTechnology Dividend Index Fund (TDIV A-), and the BlueStar Israel Technology ETF (ITEQ B+).
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