The tech sector has been getting a tad too turbulent for many of late. With soaring geopolitical uncertainties finally catching up with the market, fuelling one of the worst down days in a few months, tech investors might have a chance to pick up their favorite AI stocks at a nice markdown.
Of course, the Magnificent Seven were dragged down, perhaps more viciously than the rest of the market. And while the Mag Seven might have what it takes to pick up again, it looks like their leadership has stalled, and, with that, it might be time to consider other options out there for investors looking for a new class of tech winners.
In this piece, we’ll look at tech ETFs that provide broader exposure well beyond the Mag Seven. Given how many portfolios are too heavy in the names, perhaps the following trio could provide more growth, as the mega-cap tech trade exhausts further while new sub-$1 trillion winners emerge as new AI opportunities arise.
JPMorgan US Tech Leaders ETF
Let’s start with the JPMorgan US Tech Leaders ETF (NYSEARCA:JTEK), which has to be viewed as one of the more premier active tech ETFs out there. It’s an active ETF and one that’s not that expensive with a competitive 0.65% expense ratio. Add the JPMorgan brand into the equation, and the tech ETF is one of the bigger standouts, especially for investors looking to shift gears from passive (let’s say the Nasdaq 100) to active.
Amid rising valuations and growing concentration in the Mag Seven, there are bound to be opportunities elsewhere in the tech waters, including in the areas where most other growth investors aren’t yet fishing.
Of course, you’ll see some Mag Seven names within the fund, but they don’t run away with the exposure. Investors also stand to gain on the back of some relatively small companies with market caps below $50 billion. And some of them, including Take-Two Interactive (NASDAQ:TTWO | TTWO Price Prediction), seem rather timely, given its unique catalyst (GTA VI launch) ahead. If you like broader sector exposure, value, and catalysts, the JPMorgan US Tech Leaders ETF is a better choice than the Nasdaq 100 in many ways, at least in my view.
VanEck Semiconductor ETF
The VanEck Semiconductor ETF (NASDAQ:SMH) is still up close to 5% for 2025 despite the latest Greenland-fuelled plunge in U.S. stocks. Undoubtedly, nothing has changed about the memory chip shortage and the red-hot demand for AI. As the new generation of agentic AI applications comes to be (think Claude Cowork), the semi trade might still have room to run.
For investors looking for semiconductor exposure from the chip designers to the foundries, and even the semiconductor equipment makers, I continue to find the VanEck Semiconductor ETF to be a high-momentum play that’s dangerous to bet against. With more than 107% gains in two years, the semiconductors have been hotter than the Mag Seven, and they might just run higher, as the mega-cap tech trade corrects further.
iShares Expanded Tech-Software Sector ETF
AI has been a thorn in the side of software stocks in the past year. The selling pressure has only intensified in 2026, with the iShares Expanded Tech-Software Sector ETF (IGV) nosediving close to 7% year to date. The year may have just begun, but software is under pressure, and if January sets the tone for the rest of the year, perhaps it’s not hard to imagine that software shareholders shift from fear to panic.
Who knows what the next generation of AI agents is capable of as the software moats look to become challenged?
Either way, I view software as oversold and a potential source of alpha for investors who think the AI impact has become overblown. Perhaps the software plays that have fallen are a great value and a hedge against the advancement of next-generation AI agents. Claude Cowork is impressive, but there’s still a lot of work that must be done before agents and digital labor can really make a dent in the enterprise.
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