Using a technology etf is an interesting approach to understand technology related investments. After the economic melt down, most analysts turned to this tool to analyze technology indices and sub indices. The full form of ETF is Exchange Traded Fund. It is basically an investment plan, which may be traded as different types of shares all around the world.

The working of ETF is different in various parts of the globe. However, there are certain universal elements that never change. The Exchange Traded Fund must have an entry on the stock market. It must be operated constantly and the value of this investment plan is directly linked with the worth of the assets that has been compromised with it.

The shares coming under this category are generally bought on a large scale by big investors. The dynamics of this plan is different from the traditional ones and it can garner more money. The shares making up ETF are traded freely in the market. Apart from these, it has other advantages. It is not at all costly to own and it also provides instant exposure to the technical sector. No wonder then, that investors are tracking the technology indices with the help of Exchange Traded Funds.

Savvy investors buy and sell shares regularly operating it. Some of them even hold it for long, as in the case of mutual funds. In fact, according to the Director of Information Technology equity research wing of Standard & Poor’s, Scott Kessler, the technical sector has revived. The tech stocks rose nearly 8% in the month of May.

Basically technology etf is of 3 kinds. The sub-sector ones dealing in semiconductors and software, broad sectors, and new animatedly managed Exchange Traded Fund from Powershares are the three types. Through this diversified investment plan, companies can benefit a lot, especially IT sector. They can prove to be great medium to short term securities. They can enter in the unstable atmosphere and sustain exposure to particular companies.

According to the experts, the best ones in the business include Symantec (SYMC: 15.71 – 0.82-4.96%. BMC Software (BMC:35.82-1.03-2.80%) and Intuit (INTU: 34.36-0.85-2.41%) under the category of Powershares Dynamic Software. The value has been derived from their performance in the sub sectors. They are all strong performers in the sub divisions. The best three holdings in the Semiconductor category are Xilinx (XNLX: 23.91 -0.81 -3.28%), Analog Devices (ADI: 27.50 -0.58 -2.07%) and Broadcom (BRCM: 30.93 -1.57 -4.83%). The top three holdings in the Multimedia Networking segment of technology EFT include, Corning (GLW: 17.18 -0.32 -1.83%), Cisco (NASDAQ:CSCO) and Qualcomm (QCOM: 35.619 -1.051 -2.87%).