3 Best Tech ETF Picks for 2026

As we wrap up 2025, tech stocks are again on pace to be one of the best-performing S&P 500 sectors. Fueled by strong demand for anything tied to artificial intelligence (AI), investors steadily bought stocks and pushed the Nasdaq-100 index to several new all-time highs.

While the "Magnificent Seven" stocks helped lead the way higher, 2026 may not be a repeat. If you're looking to invest in tech, it may be time to look beyond just Nvidia, Microsoft, and Apple. While these have been terrific-performing companies for a long time, there are a number of opportunities within the sector that may be flying under the radar.

In particular, undervalued areas of the tech sector could see better performance. The mega-cap companies, as well as chip stocks, have really gotten all the attention lately. Areas, such as software and digital payments, could enjoy renewed interest if investors begin seeking out more value-oriented stocks backed by healthy fundamentals.

Here are three tech ETFs that I believe could outperform in the coming year.

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Invesco S&P 500 Equal Weight Technology ETF

The Invesco S&P 500 Equal Weight Technology ETF (NYSEMKT: RSPT) invests in all of the big large-cap tech companies, but removes the concentration factor. It equally weights the roughly 70 tech stocks within the S&P 500 and rebalances quarterly to ensure it maintains its diversified exposure.

RSPT is a great way to invest in the tech stocks that have led the market over the past several years, but broaden out the exposure in case the mega-cap names begin to underperform. We've already seen some hints that investors are worried about Magnificent Seven valuations. This ETF allows you to invest in the long-term tech narrative while mitigating some of that idiosyncratic risk.

Top holdings currently include Western Digital, Micron Technology, and Teradyne.

Amplify Digital Payments ETF

Think of the one thing that almost every person does at least once a day (and probably multiple times): buy something! Years ago, people would pay for these purchases using cash or a check. Today, everybody uses credit cards or some form of digital payment, such as PayPal.

The Amplify Digital Payments ETF (NYSEMKT: IPAY) invests in all the major companies that provide payment services. Its top three holdings -- American Express, Visa, and MasterCard -- are all major credit card issuers, but other companies within the top 10 reflect how the entire sector is evolving. PayPal is more of a traditional online payment platform. Global Payments is a payment processor and software provider. Coinbase Global is a cryptocurrency trading platform.

The transaction processing space is already a big cash flow generator. Adding the next-generation fintech evolution to it provides a great long-term growth opportunity.

iShares Expanded Tech-Software Sector ETF

Ever since coming out of the 2022 bear market, software has been a tech laggard. The AI boom had investors gravitating toward semiconductor stocks, leaving certain segments of the sector underbought and unloved.

Within the iShares Expanded Tech-Software Sector ETF (NYSEMKT: IGV), there are a lot of high-quality companies with strong revenue growth and solid margins that could finally see some of that value get unlocked in 2026. Top 10 holdings include Palantir Technologies, Salesforce, Intuit, and ServiceNow alongside industry heavyweight Microsoft.

Software is intriguing because it covers so many areas within tech. IGV is essentially an investment in cloud computing, enterprise automation, cybersecurity, and AI productivity tools. There's constant demand for performance improvement and staying ahead of the latest threats. That makes a lot of these companies steady cash flow generators that can actually add some stability to a portfolio.

With software lagging behind the Nasdaq-100 in 2025, there's some catch-up potential in 2026.

American Express is an advertising partner of Motley Fool Money. David Dierking has positions in Apple. The Motley Fool has positions in and recommends Apple, Intuit, Mastercard, Microsoft, Nvidia, Palantir Technologies, PayPal, Salesforce, ServiceNow, and Visa. The Motley Fool recommends Coinbase Global and Teradyne and recommends the following options: long January 2026 $395 calls on Microsoft, long January 2027 $42.50 calls on PayPal, short December 2025 $75 calls on PayPal, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.