Information Technology Sector: Overview and Funds

The information technology (IT) sector is comprised of companies that produce software, hardware or semiconductor equipment, or companies that provide internet or related services. The three major industry groups within the IT sector are software and services, technology hardware and equipment and semiconductors and semiconductor equipment. These three industry groups are further divided into industries and sub-industries. Companies are aligned to a specific sub-industry that best describes their core or most profitable business. In this guide, we will cover the various industries and sub-industries that make up the three major industry groups within the IT sector.

Software and Services

The software and services industry group is made up of companies that provide internet services, as well as companies that provide software and IT services. Internet services include companies that provide online databases or interactive services, such as search engines or social networks. IT services includes companies that provide IT consulting or data processing services to other companies. Finally, software consists of any sort of software for business or consumer use, ranging from enterprise software and systems software to video games.

IndustrySub-IndustryDescription

Internet Software & Services

Internet Software & ServicesCompanies that develop and market internet software or provide internet services, including online databases or interactive services. This also includes companies whose revenue mainly comes from online advertising.

IT Services

IT Consulting & Other ServicesCompanies that provide IT services or systems integration services, including IT consulting and information management.
Data Processing & Outsourced ServicesCompanies that provide data processing or outsourcing services, including back-office automation services.
SoftwareApplication SoftwareCompanies that develop and produce software for business or consumer use, including enterprise applications and technical software. This excludes home entertainment and educational software.
Systems SoftwareCompanies that develop and produce database management software and systems.
Home Entertainment SoftwareCompanies that produce home entertainment software, such as video games, and educational software for consumer use.

Examples of companies that provide software and services include Google, eBay, Facebook, Accenture, PayPal, Adobe, Microsoft and Electronic Arts (EA).

Technology Hardware and Equipment

Technology hardware and equipment is broken down into three industries: communications equipment, technology hardware, storage and peripherals and electronic equipment, instruments and components. Communications equipment includes routers, telephones and switchboards. Technology hardware, storage and peripherals includes computers, printers and cell phones. Electronic equipment, instruments and components include companies that make equipment like barcode scanners, transformers and security systems, as well as companies that are distributors or Original Equipment Manufacturers (OEM). An OEM is a company that makes parts or components that are used in another company’s end product. For example, many Dell computers use Intel processors and have Windows pre-installed--Intel and Microsoft could be considered OEMs for Dell.

IndustrySub-IndustryDescription

Communications Equipment

Communications EquipmentCompanies that produce communication equipment, including local area networks (LAN), routers, telephones, and switchboards. This excludes companies that make cell phones.

Technology Hardware, Storage & Peripherals

Technology Hardware, Storage & PeripheralsCompanies that produce cell phones, PCs, servers, electronic computer products and peripherals. This also includes motherboards, audio and video cards, monitors, keyboards and printers.

Electronic Equipment, Instruments & Components

Electronic Equipment & InstrumentsCompanies that produce electronic equipment, including scanner/barcode products, lasers, point-of-sale machines/cash registers and security systems.
Electronic ComponentsCompanies that produce electronic components, including transformers, electronic capacitors and resistors, electronic coils and connection devices.
Electronic Manufacturing ServicesCompanies that produce electronic equipment as an Original Equipment Manufacturer (OEM). An OEM is a company that makes a part or component that is used in another company's end product.
Technology DistributorsCompanies that distribute hardware and technology equipment to other companies, but do not produce this equipment or sell it to consumers. This includes companies that distribute communications equipment, computers and semiconductors.

Examples of companies that produce technology hardware and equipment include Apple, HP, Dell, Motorola, Cisco Systems, SanDisk and Western Digital.

Semiconductors and Semiconductor Equipment{#semiconductor}

Semiconductors are substances that can conduct electricity under some conditions, but not others, making them ideal for controlling electrical currents. Silicon is a material that is frequently used as a semiconductor. This industry group includes both companies that make semiconductors and companies that make peripheral equipment for semiconductors.

Industry

Sub-IndustryDescription

Semiconductors & Semiconductor Equipment

Semiconductor EquipmentCompanies that produce semiconductor equipment, including manufacturing raw materials and creating equipment used in the solar power industry.
SemiconductorsCompanies that create semiconductors, including companies that make solar modules and cells.

Examples of companies that make semiconductors and related equipment include Intel, Microchip Technology, Nvidia, QUALCOMM and Texas Instruments.

Information Technology Sector ETFs and Mutual Funds

Listed below are over 200 ETFs, index funds and mutual funds that track the information technology sector or specific industries, such as semiconductors or internet software. The expense fees of the funds below range from 0.10% to 2.80%.

NameSymbolExpense Ratio

Vanguard Information Technology ETF

VGT0.10%

Vanguard Information Technology Index Fund Admiral Shares

VITAX0.10%

Fidelity MSCI Information Tech ETF

FTEC0.12%

Technology Select Sector SPDR

XLK0.14%

PowerShares S&P SmallCap Information Technology ETF

PSCT0.29%

SPDR Morgan Stanley Technology ETF

MTK0.35%

Market Vectors Semiconductor ETF

SMH0.35%

SPDR S&P Semiconductor ETF

XSD0.35%

SPDR S&P Software & Services ETF

XSW0.35%

Guggenheim S&P 500 Equal Weight Technology ETF

RYT0.40%

SPDR S&P International Technology Sector ETF

IPK0.40%

Nationwide Ziegler NYSEArcaTech100 Fund Class I

NWJEX0.42%

iShares U.S. Technology ETF

IYW0.43%

SPDR FactSet Innovative Technology ETF

XITK0.45%

iShares North American Tech ETF

IGM0.47%

iShares Global Tech ETF

IXN0.47%

iShares Exponential Technologies ETF

XT0.47%

iShares North American Tech-Software ETF

IGV0.47%

iShares PHLX Semiconductor ETF

SOXX0.47%

iShares North American Tech-Multimedia Networking ETF

IGN0.47%

WisdomTree Japan Hedged Tech, Media and Telecom ETF

DXJT0.48%

First Trust NASDAQ Technology Dividend ETF

TDIV0.50%

John Hancock Multifactor Technology ETF

JHMT0.50%

First Trust Dow Jones Internet ETF

FDN0.54%

Nationwide Ziegler NYSEArcaTech100 Institutional Service Class

NWJFX0.56%

First Trust ISE Cloud Computing ETF

SKYY0.60%

First Trust NASDAQ-100-Technology Sector ETF

QTEC0.60%

PowerSHares NASDAQ Internet ETF

PNQI0.60%

PowerShares DWA Technology Momentum ETF

PTF0.60%

First Trust NASDAQ Cybersecurity ETF

CIBR0.60%

First Trust Technology AlphaDEX ETF

FXL0.63%

PowerShares Dynamic Software ETF

PSJ0.63%

PowerShares Dynamic Semiconductors ETF

PSI0.63%

PowerShares Dynamic Networking ETF

PXQ0.63%

Global X Social Media ETF

SOCL0.65%

Global X NASDAQ China Technology ETF

QQQC0.65%

Guggenheim China Technology ETF

CQQQ0.70%

KraneShares CSI China Internet ETF

KWEB0.71%

Fidelity Advisor® Technology Fund Class I

FATIX0.74%

PureFunds ISE Cyber Security ETF

HACK0.75%

PureFunds ISE Mobile Payments ETF

IPAY0.75%

PureFunds ISE Big Data ETF

BDAT0.75%

BlueStar TA-BIGITech Israel Technology ETF

ITEQ0.75%

Janus Aspen Global Technology Institutional Class

JGLTX0.76%

Deutsche Science and Technology Institutional Class

KTCIX0.76%

Fidelity® Select Software & IT Services Portfolio

FSCSX0.77%

Fidelity® Select Electronics

FSELX0.77%

Fidelity® Select Technology

FSPTX0.78%

Janus Global Technology Fund Class I

JATIX0.79%

Nationwide Ziegler NYSEArcaTech100 Fund Class A

NWJCX0.79%

Fidelity® Select Computers

FDCPX0.80%

Direxion Daily Cyber Security and IT Bear 2X ETF

HAKD0.81%

Direxion Daily Cyber Security and IT Bull 2X ETF

HAKK0.81%

Fidelity® Select IT Services

FBSOX0.81%

Ivy Science and Technology Fund Class R6

ISTNX0.82%

T. Rowe Price Science & Technology

PRSCX0.84%

Deutsche Science and Technology Fund Class S

KTCSX0.85%

Emerging Markets Internet & eCommerce ETF

EMQQ0.86%

Invesco Technology Fund Class R5

FTPIX0.87%

Fidelity® Select Communications Equipment Portfolio

FSDCX0.89%

Janus Global Technology Fund Class D

JNGTX0.90%

Columbia Seligman Comms & Info Fund Class I

CSFIX0.91%

T. Rowe Price Global Technology

PRGTX0.91%

MFS Technology Fund Class R5

MTCLX0.92%

Janus Global Technology Fund Class T

JAGTX0.93%

ProShares Ultra Technology ETF

ROM0.95%

Robo Global Robotics & Automation ETF

ROBO0.95%

ProShares Ultra Semiconductors ETF

USD0.95%

ARK Web x.0 ETF

ARKW0.95%

ARK Innovation ETF

ARKK0.95%

ProShares UltraShort Technology

REW0.95%

ProShares UltraShort Semiconductors

SSG0.95%

Columbia Global Technology Growth Fund Class Y

CGTUX0.95%

Nationwide Bailard Tech&Sci Fund Class M

NWHQX0.95%

Nationwide Bailard Tech&Sci Institutional Class

NWHTX0.95%

Fidelity Advisor® Electronics Fund Class I

FELIX0.96%

Direxion Daily Semiconductor Bull 3X ETF

SOXL0.97%

Direxion Daily Semiconductor Bear 3X ETF

SOXS0.97%

Ivy Science & Technology Fund Class I

ISTIX0.97%

Matthews Asia Science and Tech Institutional Class

MITEX0.97%

Columbia Seligman Communications and Information Fund Class R5

SCMIX0.97%

VALIC Company I Science & Technology

VCSTX0.97%

Direxion Daily Technology Bear 3X ETF

TECS0.98%

Columbia Global Technology Growth Fund Class I

CONIX0.98%

Deutsche Science and Technology Fund Class A

KTCAX0.98%

Direxion Daily Technology Bull 3X ETF

TECL0.99%

Columbia Seligman Global Technology Fund Class I

CSYIX0.99%

Waddell & Reed Science & Technology Fund Class Y

USTFX0.99%

Columbia Global Technology Growth Fund Class R5

CTHRX1.00%

Putnam Global Technology Fund Class Y

PGTYX1.01%

Dreyfus Technology Growth Fund Class I DGVRX

1.02%

MFS Technology Fund Class I

MTCIX1.02%

MFS Technology Fund Class R4

MTCJX1.02%

Columbia Seligman Global Technology Fund Class R5

SGTTX1.02%

Nationwide Bailard Tech&Sci Institutional Service Class

NWHUX1.03%

Henderson Global Technology Fund Class R6

HFGRX1.04%

T. Rowe Price Science & Technology Fund Advisor Class

PASTX1.06%

Fidelity Advisor® Technology Fund Class A

FADTX1.08%

Goldman Sachs Technology Opportunities Institutional Class

GITIX1.08%
Janus Global Technology Fund Class AJATAX1.08%

Columbia Seligman Comms & Info Fund Class Z

CCIZX1.10%

Henderson Global Technology Fund Class I

HFGIX1.11%

Red Oak Technology Select

ROGSX1.11%

Columbia Seligman Communications and Information Fund Class R4

SCIOX1.11%

Fidelity Advisor® Communications Equip Fund Class I

FDMIX1.14%

Columbia Global Technology Growth Fund Class Z

CMTFX1.15%

Columbia Global Technology Growth Fund Class R4

CTYRX1.15%

Invesco Technology Fund Class Y

ITYYX1.15%

Columbia Seligman Global Technology Fund Class R4

CCHRX1.17%

Columbia Seligman Global Technology Fund Class Z

CSGZX1.17%

Matthews Asia Science and Tech Investor Class

MATFX1.18%

USAA Science & Technology

USSCX1.18%

Janus Global Technology Fund Class S

JATSX1.20%

Ivy Science & Technology Fund Class Y

WSTYX1.22%

Goldman Sachs Technology Opportunities Fund Class IR

GISTX1.23%

RS Technology Fund Class Y

RIFYX1.24%

Columbia Seligman Communications and Information Fund Class K

SCIFX1.24%

Waddell & Reed Science & Technology Fund Class A

UNSCX1.24%

Black Oak Emerging Technology

BOGSX1.25%

AllianzGI Technology Institutional Class

DRGTX1.26%

Northern Technology

NTCHX1.26%

Putnam Global Technology Fund Class A

PGTAX1.26%

Ivy Science & Technology Fund Class A

WSTAX1.26%

BlackRock Science & Technology Opportunities Institutional Shares

BGSIX1.27%

Fidelity Advisor® Electronics Fund Class A

FELAX1.27%

MFS Technology Fund Class A

MTCAX1.27%

MFS Technology Fund Class R3

MTCHX1.27%

Nationwide Bailard Tech&Sci Fund Class A

NWHOX1.27%

Columbia Seligman Global Technology Fund Class K

SGTSX1.27%

Dreyfus Technology Growth Fund Class A

DTGRX1.28%

Invesco Technology Investor

FTCHX1.30%

Invesco Technology Sector Fund Class Y

IFODX1.33%

Fidelity Advisor® Technology Fund Class T

FATEX1.34%

Henderson Global Technology Fund Class A

HFGAX1.34%

Rydex Internet Investor Class

RYIIX1.35%

Rydex Electronics Investor Class

RYSIX1.35%

Rydex Technology Investor Class

RYTIX1.35%

Columbia Seligman Communications and Information Fund Class B

SLMBX1.35%

Columbia Seligman Communications and Information Fund Class A

SLMCX1.35%

Wells Fargo Specialized Technology Fund Class Admin

WFTDX1.35%

AllianzGI Technology Fund Class P

ARTPX1.36%

Fidelity Advisor® Communications Equip Fund Class A

FDMAX1.39%

Columbia Global Technology Growth Fund Class A

CTCAX1.40%

Invesco Technology Fund Class A

ITYAX1.40%

Columbia Seligman Global Technology Fund Class A

SHGTX1.42%

USAA Science & Technology Adviser Class

USTCX1.42%

Ivy Science & Technology Fund Class E

ISTEX1.43%

ICON Information Technology Fund Class S

ICTEX1.44%

BlackRock Science & Technology Opportunities Service Shares

BSTSX1.48%

Goldman Sachs Technology Opportunities Fund Class A

GITAX1.48%

RS Technology Fund Class A

RSIFX1.49%

AllianzGI Technology Administrative

DGTAX1.51%

Putnam Global Technology Fund Class R

PGTRX1.51%

Wells Fargo Specialized Technology Fund Class A

WFSTX1.51%

MFS Technology Fund Class R2

MTERX1.52%

Nationwide Ziegler NYSEArcaTech100 Fund Class C

NWJDX1.53%

Ivy Science & Technology Fund Class R

WSTRX1.57%

Goldman Sachs Technology Opportunities Service Class

GITSX1.58%

Invesco Technology Sector Fund Class A

IFOAX1.58%

BlackRock Science & Technology Opportunities Investor A Shares

BGSAX1.59%

Rydex Technology Fund Class A

RYTHX1.59%

Columbia Seligman Communications and Information Fund Class R

SCIRX1.60%

Fidelity Advisor® Electronics Fund Class T

FELTX1.61%

AllianzGI Technology Fund Class A

RAGTX1.61%

Rydex Electronics Fund Class A

RYELX1.61%

Rydex Internet Fund Class A

RYINX1.61%

Fidelity Advisor® Communications Equip Fund Class T

FDMTX1.64%

Columbia Seligman Global Technology Fund Class R

SGTRX1.67%

Janus Global Technology Fund Class C

JAGCX1.72%

ICON Information Technology Fund Class A

ICTTX1.75%

Putnam Global Technology Fund Class M

PGTMX1.76%

Saratoga Technology & Communications Fund Class I

STPIX1.80%

Fidelity Advisor® Technology Fund Class C

FTHCX1.83%

BlackRock Science & Technology Opportunities R Shares

BGSRX1.85%

Deutsche Science and Technology Fund Class C

KTCCX1.85%

Rydex Internet Fund Class H

RYIAX1.85%

Rydex Electronics Fund Class H

RYSAX1.85%

Rydex Technology Fund Class H

RYTAX1.85%

Firsthand Technology Opportunities

TEFQX1.85%

Fidelity Advisor® Technology Fund Class B

FABTX1.90%

RS Technology Fund Class K

RIFKX1.93%

Ivy Science & Technology Fund Class C

WSTCX1.95%

Firsthand Alternative Energy

ALTEX1.98%

Berkshire Focus

BFOCX1.99%

Nationwide Bailard Tech&Sci Fund Class C

NWHPX1.99%

Putnam Global Technology Fund Class C

PGTDX2.01%

Putnam Global Technology Fund Class B

PGTPX2.01%

Ivy Science & Technology Fund Class B

WSTBX2.01%

MFS Technology Fund Class B

MTCBX2.02%

MFS Technology Fund Class C

MTCCX2.02%

MFS Technology Fund Class R1

MTCKX2.02%

Fidelity Advisor® Electronics Fund Class C

FELCX2.05%

Dreyfus Technology Growth Fund Class C

DTGCX2.08%

Fidelity Advisor® Electronics Fund Class B

FELBX2.09%

Columbia Seligman Communications and Information Fund Class C

SCICX2.10%

Henderson Global Technology Fund Class C

HFGCX2.12%

Columbia Global Technology Growth Fund Class B

CTCBX2.14%

Fidelity Advisor® Communications Equip Fund Class B

FDMBX2.14%

Fidelity Advisor® Communications Equip Fund Class C

FDMCX2.14%

Columbia Global Technology Growth Fund Class C

CTHCX2.15%

Invesco Technology Fund Class C

ITHCX2.15%

Invesco Technology Fund Class B

ITYBX2.15%

Columbia Seligman Global Technology Fund Class B

SHTBX2.17%

Columbia Seligman Global Technology Fund Class C

SHTCX2.17%

Saratoga Technology & Communications Fund Class A

STPAX2.20%

Waddell & Reed Science & Technology Fund Class C

WCSTX2.20%

Goldman Sachs Technology Opportunities Fund Class C

GITCX2.23%

Wells Fargo Specialized Technology Fund Class C

WFTCX2.26%

Wells Fargo Specialized Technology Fund Class B

WFTBX2.27%

RS Technology Fund Class C

RINCX2.28%

Waddell & Reed Science & Technology Fund Class B

USTBX2.30%

Invesco Technology Sector Fund Class C

IFOCX2.32%

Invesco Technology Sector Fund Class B

IFOBX2.33%

Upright Growth

UPUPX2.34%

Rydex Technology Fund Class C

RYCHX2.35%

Rydex Internet Fund Class C

RYICX2.35%

Rydex Electronics Fund Class C

RYSCX2.35%

AllianzGI Technology Fund Class C

RCGTX2.36%

BlackRock Science & Technology Opportunities Investor C Shares

BGSCX2.40%

Hennessy Technology Institutional Class

HTCIX2.44%

Jacob Internet Investor Class

JAMFX2.46%

Hennessy Technology Investor

HTECX2.75%

Saratoga Technology & Communications Fund Class C

STPCX2.80%

When purchasing shares of a fund, you should always research the fund. This includes researching the investment strategy, fees and loads and historical returns. You should also consider your own portfolio allocation and strategy.

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