Tech ETFs have been among the best-performing funds over the past decade, driven by the dominance of companies like Apple, Microsoft, NVIDIA, and Alphabet. For Canadian investors, TEC offers the broadest global tech exposure (including Samsung, TSMC, and ASML alongside US giants), while XQQ and ZQQ track the NASDAQ-100 for pure US tech. These work best as a 10–25% satellite position alongside a diversified core like XEQT — not as your entire portfolio, since tech can drop 30–40% in bear markets and takes years to recover. For the broader product map, start with our ETFs and index funds hub.
Best Tech ETFs Canada 2026
| ETF | Ticker | MER | Focus | Holdings |
|---|---|---|---|---|
| TD Global Tech Leaders | TEC | 0.40% | Global tech leaders | 260+ |
| iShares NASDAQ 100 (CAD-Hedged) | XQQ | 0.39% | NASDAQ-100 | 100 |
| BMO NASDAQ 100 Equity (CAD) | ZQQ | 0.39% | NASDAQ-100 | 100 |
| BMO NASDAQ 100 (Unhedged) | ZNQ | 0.39% | NASDAQ-100 (unhedged) | 100 |
| Evolve FANG+ | TECH | 0.70% | Mega-cap tech (FANG+) | ~10 |
| Harvest Tech Achievers Growth | HTA | 0.45% | US tech with covered calls | 20 |
Top Holdings (TEC)
| Company | Weight (approx) |
|---|---|
| Apple | ~14% |
| Microsoft | ~13% |
| NVIDIA | ~11% |
| Alphabet | ~5% |
| Amazon | ~5% |
| Meta | ~4% |
| Broadcom | ~3% |
| TSMC | ~3% |
| Samsung | ~2% |
| ASML | ~2% |
TEC vs XQQ vs ZQQ
If you want the broader risk-return context for these concentrated growth funds, compare them with best growth ETFs in Canada.
| Feature | TEC | XQQ | ZQQ |
|---|---|---|---|
| MER | 0.40% | 0.39% | 0.39% |
| Index | Solactive Global Tech | NASDAQ-100 | NASDAQ-100 |
| Scope | Global tech | US NASDAQ | US NASDAQ |
| Hedged | ❌ Unhedged | ✅ CAD-hedged | ❌ Unhedged |
| Holdings | 260+ | 100 | 100 |
| Non-US stocks | ✅ (Samsung, TSMC, ASML) | ❌ US only | ❌ US only |
Risk Considerations
| Risk Factor | Impact |
|---|---|
| Sector concentration | Tech is one sector — high correlation |
| Valuation risk | Tech often trades at premium multiples |
| Drawdown potential | -30% to -40% in bear markets |
| Regulatory risk | Antitrust, AI regulation, data privacy |
| Interest rate sensitivity | Growth stocks hurt by rising rates |
Who Should Buy Tech ETFs
| Profile | Recommendation |
|---|---|
| Want satellite tech exposure (10-25%) | ✅ Good complement to core portfolio |
| Long-term horizon (10+ years) | ✅ Volatility smooths over time |
| Believe in continued tech growth | ✅ AI, cloud, semiconductors |
| All-in-one ETF holder wanting to tilt tech | ✅ Small TEC/XQQ allocation |
| Risk-averse or short horizon | ❌ Too volatile |
That time-horizon decision is easiest to make with asset allocation by age.
Suggested allocation ranges
Position sizing is usually more important than picking between similar tech ETFs.
| Investor profile | Typical tech allocation |
|---|---|
| Conservative | 0-10% |
| Balanced | 10-20% |
| Growth-oriented | 20-30% |
| High-conviction tech investor | 30%+ (higher risk) |
If your portfolio already has large US equity exposure through broad-market ETFs, remember you may already be holding significant tech weight.
Hedged vs unhedged for Canadian investors
XQQ is CAD-hedged while ZQQ/ZNQ are unhedged. Neither is universally better.
- Hedged: smoother CAD returns when USD weakens
- Unhedged: full USD exposure, which can help or hurt depending on currency cycles
Pick one approach and stay consistent with your broader portfolio currency policy.
Rebalancing and risk control
Tech can outperform for long periods, then correct sharply. Rebalancing helps manage concentration risk.
Simple framework:
- Set a target tech allocation
- Rebalance quarterly or semi-annually
- Trim if tech grows far above target weight
- Add cautiously after large drawdowns only if thesis is unchanged
This keeps position size from silently drifting too high during bull markets.
Example implementation paths
Below are simple examples of how investors often add tech ETFs to a diversified core.
| Portfolio style | Core holding | Tech tilt example |
|---|---|---|
| One-ticket portfolio | XEQT/VEQT | Add 5-10% TEC |
| Balanced ETF investor | 60/40 or growth mix | Add 10-15% XQQ or ZQQ |
| High-growth investor | Equity-heavy allocation | Add 15-25% split across TEC + NASDAQ ETF |
The right mix depends on drawdown tolerance. If a 30-40% sector decline would force you to sell, your tech allocation is likely too high.
The Bottom Line
TEC is the best pick for global tech exposure with non-US names included. XQQ or ZQQ if you want pure NASDAQ-100. Keep it as a satellite holding (10–25%), accept that drawdowns will be severe, and only invest money you won’t need for 10+ years. If you want the narrower US large-cap alternative, see best S&P 500 ETFs in Canada.