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Our analysis of 31 IA Technology & Technology Innovation funds found only 16% achieved a 5-star Yodelar Rating, while over half frequently underperformed their peers.
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The sector average 5-year return was 86.36%, yet several of the top performers more than doubled this figure.
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Polar Capital Global Technology and Liontrust Global Technology led active fund performance, maintaining consistent top-quartile rankings across all timeframes.
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Low-cost index funds such as L&G Global Technology Index Trust and iShares S&P 500 Information Technology ETF demonstrated that passive strategies can rival or surpass many active managers.
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The dominance of U.S. technology firms has been the key driver of global equity growth, but this concentration highlights the importance of maintaining diversification and risk balance.
Technology has been one of the most influential forces in global markets, driving innovation and shaping the way companies and consumers interact. For investors, it has offered both exceptional growth opportunities and periods of sharp volatility — a combination that has made the sector one of the most closely watched areas of the market.
Our analysis of 31 funds within the IA Technology & Technology Innovation sector reviewed each funds performance over the past 1, 3, and 5 year periods. This analysis identified a wide variation in outcomes, with some funds capturing the sector’s long-term growth trends far more effectively than others.
Over the past 5 years, the average fund in this sector returned 86.36%, yet several achieved well over double that figure. In the report below, we highlight the 10 funds that delivered the strongest cumulative growth over the past 5 years, and we explore how their differing strategies, costs, and portfolio approaches have influenced their performance over time.
Technology Fund Performance Summary
Our analysis of 31 Investment Association (IA) Technology & Technology Innovation funds highlights a wide variation in results. Only 16% of funds achieved a 5-star Yodelar Rating for consistently ranking in the top quartile of their sector over 1, 3, and 5 years, while 52% received a rating of 1 or 2 stars, reflecting frequent lower-half sector rankings. This level of dispersion illustrates the challenge of maintaining consistent performance in a sector that is fast-moving, highly competitive, and sensitive to global market cycles.
How Yodelar Rates Fund Performance
10 Top Performing Technology Funds Over 5 Years
The following 10 funds have achieved the highest cumulative growth over the past 5 years. Each has been assessed for performance consistency over 1, 3, and 5 year periods, alongside their Ongoing Charges Figure (OCF) and approach to portfolio construction. Together, they provide a clear picture of how different management styles and strategies have shaped long-term results within the technology sector.
The technology sector has been a major driver of growth in recent years, but it has also shown periods of sharp volatility. This was evident in 2022 (see table above), when many technology funds fell behind other areas of the market as investor sentiment shifted. These fluctuations highlight the importance of diversification and the need for balanced exposure across different sectors and asset classes to help manage risk through changing market conditions.
1. iShares S&P 500 Information Technology ETF
The iShares S&P 500 Information Technology ETF closely mirrors the performance of the U.S. technology market, producing 26.00% growth over 1 year, 112.13% over 3 years, and 170.36% over 5 years — significantly outperforming the sector average. Its low OCF of 0.15% has made it one of the most cost-efficient vehicles for technology exposure.
Tracking the S&P 500 Information Technology Index, this ETF holds leading American firms across software, semiconductors, and hardware. Its results reflect the dominant growth of U.S. technology giants and the resilience of the broader digital economy.
2. L&G Global Technology Index Trust
The L&G Global Technology Index Trust has outperformed many active managers despite its passive design, delivering 28.24% growth over 1 year, 114.21% over 3 years, and 160.43% over 5 years. With a low OCF of 0.46%, it has efficiently tracked the FTSE World Technology Index.
This index fund provides broad exposure to global technology companies, primarily U.S. market leaders such as Apple, Microsoft, and NVIDIA. Its diversified structure and low-cost framework have enabled investors to capture sector-wide growth while maintaining efficient performance consistency.
3. SPDR S&P U.S. Technology Select Sector ETF
This SPDR ETF achieved returns of 25.69% over 1 year, 88.83% over 3 years, and 141.13% over 5 years. With an OCF of 0.15%, it provides low-cost exposure to the U.S. technology sector.
The fund replicates the S&P U.S. Technology Select Sector Index, offering diversified access to major U.S. companies involved in hardware, software, and semiconductors. Its structure allows investors to efficiently participate in sector growth trends without the influence of active management decisions.
4. Xtrackers MSCI World Information Technology ETF
The Xtrackers MSCI World Information Technology ETF delivered 25.19% over 1 year, 100.91% over 3 years, and 140.46% over 5 years. Its OCF of 0.25% represents strong value relative to its results.
By tracking the MSCI World Information Technology Index, the fund offers exposure to leading technology firms across developed markets. Its global diversification reduces concentration risk while maintaining strong participation in the dominant U.S. segment, supporting consistent long-term growth.
5. SSGA SPDR MSCI World Technology ETF
The SSGA SPDR MSCI World Technology ETF produced growth of 25.22% over 1 year, 100.82% over 3 years, and 140.25% over 5 years, with a competitive OCF of 0.30%.
This fund mirrors the MSCI World Technology Index, providing exposure to the world’s largest technology firms. Its disciplined passive approach, coupled with efficient cost control, has delivered reliable results that keep pace with sector leaders.
6. Liontrust Global Technology Fund
Liontrust’s Global Technology Fund has delivered strong results, achieving growth of 38.75% over 1 year, 118.53% over 3 years, and 126.47% over 5 years — comfortably above the sector average across all periods. With an OCF of 1.89%, it is among the higher-cost options in this sector. While its returns have exceeded most peers over recent years, the fund’s higher ongoing charge means investors have paid more for access to its actively managed approach.
The fund targets companies driving digital transformation across industries, particularly within software, semiconductors, and payments. Its emphasis on firms with recurring revenue models and robust balance sheets has provided resilience through market volatility, contributing to consistent long-term growth.
7. Janus Henderson Global Technology Leaders Fund
The Janus Henderson Global Technology Leaders Fund achieved 25.99% growth over 1 year, 102.91% over 3 years, and 119.55% over 5 years. Its OCF of 1.74% is higher than average, but consistent outperformance over the long term highlights the benefit of its active management approach.
The fund invests in companies leading innovation within software, digital services, and semiconductor technology. By focusing on businesses with durable earnings and sustainable competitive advantages, it has captured a balanced blend of growth and stability.
8. Polar Capital Global Technology Fund
The Polar Capital Global Technology Fund delivered outstanding results, achieving growth of 47.44% over 1 year, 119.25% over 3 years, and 106.06% over 5 years — significantly ahead of the sector average. Its Ongoing Charges Figure (OCF) of 1.66% is higher than passive alternatives, yet long-term returns have more than justified the cost.
This actively managed fund invests globally, focusing on established technology leaders with sustainable competitive advantages. Its diversified portfolio blends large-cap stability with exposure to emerging innovators, allowing it to benefit from both structural growth and cyclical recovery across the technology cycle.
9. Herald Worldwide Technology Fund
The Herald Worldwide Technology Fund returned 23.54% over 1 year, 71.56% over 3 years, and 105.98% over 5 years — modestly behind the very top performers but still ahead of the sector average. Its OCF of 0.95% reflects active management across a global portfolio.
Herald focuses on small and mid-sized technology companies, particularly those in emerging and niche markets. This strategy introduces higher volatility but provides access to early-stage innovators with significant long-term potential.
10. SPDR S&P U.S. Communication Services Select Sector ETF
While technically classified under Communication Services, this ETF shares characteristics with broader technology funds, returning 37.29% over 1 year, 101.95% over 3 years, and 104.62% over 5 years. With an ultra-low OCF of 0.15%, it has been an efficient performer.
The fund tracks the S&P Communication Services Select Sector Index, investing in major digital media and communication platforms such as Alphabet, Meta Platforms, and Netflix. Its results demonstrate the crossover between communication and technology in today’s digital economy.
The Role of Technology in Recent Market Growth
Technology has been one of the strongest drivers of global investment returns over the past decade. Advances in areas such as artificial intelligence, automation, and digital connectivity have transformed industries and helped lift the wider equity market. Much of this progress has been led by major U.S. firms, which now make up a significant share of global stock market value.
However, the same strength that has powered technology’s rise can also lead to higher concentration risk. Periods such as 2022 showed how quickly sentiment can shift, with many technology funds falling sharply as markets adjusted. These cycles highlight the importance of maintaining a balanced portfolio that blends exposure to growth sectors with diversification across other regions and asset types.
Within professionally managed portfolios, such as those overseen by MKC Invest, diversification plays a central role. Portfolios are structured to benefit from long-term growth themes like technology while remaining resilient through market fluctuations. This approach ensures investments are aligned with each investor’s risk profile and can adapt efficiently as conditions evolve.
Download the Full Technology Fund Performance Report
This analysis features the 10 strongest performers, but our complete review includes all 31 funds within the IA Technology & Technology Innovation sector. The full report details each fund’s performance, cost, and consistency ranking, enabling investors to better understand how their technology exposure compares to sector peers.
Download the Full Technology Fund Performance Report
Get A Free Analysis of Your Portfolio
The dominance of technology in recent years means many investors may now hold higher-than-intended exposure to this single sector. While this has benefited portfolios during periods of strong growth, it can also increase overall risk if markets reverse.
A professional portfolio analysis can identify where holdings may be overly concentrated or under-diversified, helping ensure that exposure to sectors such as technology remains appropriate to your objectives and risk level.
Our team offers a free, no-obligation portfolio review that benchmarks your existing funds against their sector averages, highlights areas of duplication or inefficiency, and assesses overall performance quality. It’s a simple way to gain clarity on how effectively your portfolio is structured for future growth.
