One of the best ways to make a great deal of money in the stock market is by buying shares of companies that are benefiting from tech revolutions. The best tech ETFs are often great choices for retail investors because they give everyone the ability to exploit revolutions without taking on a ton of risk.
Two of the biggest changes in our society, of course, are the widespread adoption of solar energy and electric vehicles. Luckily, two ETFs enable investors to benefit directly from the explosion of those two technologies.
If you want to dive in before these trends explode, here are three of the best tech ETFs to buy now:
Best Tech ETFs: Invesco Solar ETF (TAN)
Expense Ratio: 0.66%, or $66 on an initial $10,000 investment
Three recent developments have lit a fire under solar stocks in general and the Invesco Solar ETF (NYSEARCA:TAN) in particular.
The Senate and House of Representatives recently passed the Democrats’ budget bill, which, if signed into law, would implement a 30% investment tax credit for all solar energy projects for 10 years. Solar energy companies are poised to get a tremendous boost in the U.S. for many years to come.
Meanwhile, in June, President Joe Biden waived tariffs on solar imports from several Southeastern Asian countries for two years. The move will tremendously benefit the many Chinese solar companies that have factories in those nations and the firms that carry out solar projects in the U.S.
Finally, the European Union in May decided to attempt to install a huge “400GW of solar PV by 2025 and almost 740GW by 2030.”
The electrification of transportation, along with the pro-solar policies of China, India and many other nations, should also tremendously boost the TAN ETF, making it one of the best tech ETS to buy.
Global X Lithium & Battery Tech ETF (LIT)
Expense Ratio: 0.75%
Tesla (NASDAQ:TSLA) CEO Elon Musk recently wrote that “lithium batteries are the new oil.” In other words, with EV demand and production exploding, countries and automakers are striving mightily to get their hands on as much lithium and as many electric vehicle batteries as they can.
That situation, of course, sounds great for lithium miners and battery makers. And in the last few weeks, both types of companies have reported very strong quarterly results.
LG Chem, which trades in South Korea, on July 29 reported that its profit had soared 400% year over year, driven partly by an improvement in its EV battery business.
“We are seeing gradual increases in our cylindrical battery shipments and we expect to see continuous growth as the global EV demand continues to grow,” the company’s CFO said.
ALB stock is the biggest component of the Global X Lithium & Battery Tech ETF, accounting for 12% of its overall holdings.
Best Tech ETFs: Robo Global Robotics and Automation Index ETF (ROBO)
Expense Ratio: 0.95%
Robo Global (NYSEARCA:ROBO) is a very good, low-risk means of benefiting from the robotics and automation trend. Its top holdings include Fanuc (OTCMKTS:FANUY), a leader in industrial robotics, and ServiceNow (NYSE:NOW), a leader in workflow automation.
Another one of the fund’s holdings is Azenta (NASDAQ:AZTA), an intriguing company that “provides life science sample exploration and management solutions for the life sciences market.” Among its leading products are “automated cold sample management systems.” By automating processes in the life sciences sector that usually require highly compensated human employees, Azenta can save firms in the space tremendous amounts of money.
In the month that ended on Aug. 11, ROBO stock climbed 16%, indicating that the ETF is starting to heat up.
On the date of publication, Larry Ramer held a long position in LIT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.