The Best Performing Tech ETFs for March 2025 in Singapore

For Singaporean investors seeking exposure to the technology sector, technology-focused ETFs present a compelling opportunity. These ETFs invest in a basket of tech-related companies, encompassing hardware, software and emerging technologies like AI. By investing in a tech ETF, you gain exposure to a diverse range of tech stocks, which is one of the best ways to mitigate the risks associated with individual stock picking. 

This diversification is particularly valuable in the volatile tech sector, where rapid innovation and market shifts can significantly impact company performance. With the growing prominence of technology in Singapore's economy, tech ETFs can be a strategic addition to any investment portfolio, aligning with the nation's drive towards digital transformation.

A tech ETF, or technology exchange-traded fund, is an investment fund that focuses on companies within the technology sector. These ETFs, which can include tech index funds, pool investor money to buy shares of various tech companies, providing a diversified approach to investing in this dynamic industry.

Specifically, tech ETFs include companies that manufacture hardware, such as computers, smartphones, semiconductors and other electronics, as well as software companies specialising in areas like artificial intelligence, cybersecurity and cloud technology.

By investing in a tech ETF, you gain exposure to a diversified range of technology stocks, which can significantly reduce risk compared to investing in individual companies. Given that Singapore's local market has limited options for pure tech plays, many investors turn to international markets for exposure to global tech giants.

By investing in a tech ETF, you gain exposure to a broad range of technology companies, spanning hardware manufacturers and software innovators, effectively reducing the risk associated with individual stock selection. This diversification is crucial in the volatile tech sector, where fortunes can change rapidly.

Additionally, the technology sector has historically demonstrated significant growth potential, making tech ETFs an attractive option for those seeking substantial returns. ETFs also provide an accessible entry point into the tech sector without requiring the expertise or capital needed to select individual stocks.

This accessibility is particularly beneficial for Singaporean investors looking to tap into global tech trends, as it allows them to participate in the growth of international tech giants without needing to navigate complex foreign markets.

Diving into tech ETFs can be exciting, but it's essential to start with a solid plan. Here's a step-by-step guide tailored for Singaporean investors:

• Step 1: Open a brokerage account — Choose a brokerage that offers access to international markets where tech ETFs are listed.

• Step 2: Research available ETFs — Utilise resources like the Singapore Exchange (SGX) and financial news platforms to identify suitable tech ETFs.

• Step 3: Assess ETF performance — Review historical performance, expense ratios and holdings.

• Step 4: Place an order — Decide on the investment amount and execute the buy order through your brokerage platform.

• Step 5: Monitor Your Investment — Regularly review your ETF's performance and stay updated on technology sector trends.

>> Read: 9 Best Performing Clean Energy ETFs

Additional resources

What is an Exchange-Traded Fund (ETF)? Beginner’s Guide

Investing in Exchange Traded Funds (ETFs) | How to Buy ETFs
7 Best-Performing ESG ETFs and 7 Cheapest ESG ETFs for March 2025

Guide to Value Investing, and Why You Should Consider Value ETFs