Let's cut to the chase. You're asking "which ETF excludes technology?" because you're likely staring at a portfolio that's become a bet on a handful of mega-cap tech stocks, and it's making you nervous. You're right to be. I've been there. After the 2022 tech wreck, a chunk of my own portfolio evaporated because I was overexposed. That pain led me on a deep dive into funds that deliberately avoid the tech sector. It's not about hating innovation; it's about smart risk management. The answer isn't one magic fund, but a strategy. In this guide, I'll walk you through the specific ETFs that fit the bill, why you might want them, and the non-obvious pitfalls I learned the hard way.

What You'll Find Inside

The Real Reasons to Ask "Which ETF Excludes Technology?"

This question pops up at specific moments. Maybe the Nasdaq just had a bad week and your S&P 500 fund tanked with it (because tech is over 30% of that index). Perhaps you're nearing retirement and can't stomach the volatility. Or, you might believe tech valuations are stretched and want to rotate into overlooked sectors.

Here's the thing most articles miss: a simple "ex-tech" ETF might not solve your problem. If you buy a fund that excludes tech but loads up on healthcare stocks that are themselves dependent on tech innovation (like medical devices or biotech software), have you really diversified? Probably not. The goal isn't just to delete a sector label; it's to find uncorrelated sources of return.

I remember talking to an investor who proudly moved into a dividend-focused ETF to avoid tech. He didn't realize it held significant positions in Microsoft and Apple—both major tech players and dividend payers. He hadn't dug into the actual holdings.

How "Ex-Tech" or "Non-Tech" ETFs Actually Work

These funds typically follow one of three paths, each with trade-offs.

Sector-Specific Exclusion: The most straightforward. The fund's index rules explicitly state: "Exclude companies classified in the Information Technology sector (and sometimes Communication Services)." The SEC filings will detail this. This gives you pure exposure to everything else—financials, industrials, utilities, etc.

"Value" or "Dividend" Tilts: Many value-oriented or high-dividend ETFs naturally underweight tech because the sector is often growth-oriented. A fund like the Vanguard Value ETF (VTV) has only about 5% in tech. This is an indirect but effective method.

Thematic Avoidance: Some funds target themes inherently low in tech. Think infrastructure, shipping, or agriculture ETFs. Their tech exposure is incidental and usually minimal.

Key Insight: Don't just trust the fund name. The only way to know which ETF excludes technology for sure is to check its fact sheet or portfolio holdings on the issuer's site (like Vanguard or iShares). Look for the "Sector Breakdown" table. If tech is 0% or very low single digits, you've found your candidate.

My Top 5 Picks: ETFs That Exclude or Minimize Tech

Based on expense ratios, liquidity, and how effectively they achieve the goal, here are the ETFs I've personally researched and, in some cases, invested in. This isn't just a list from a screener; it's a curated selection with context.

ETF Ticker & Name Tech Exposure Primary Focus / Strategy Expense Ratio My Notes & Experience
SPDR Portfolio S&P 500 Ex-Technology ETF (SPXT) 0% Tracks the S&P 500 ex-Information Technology Index. Pure exclusion. 0.10% The most direct answer to the question. It's the S&P 500 minus all tech stocks. Performance feels very different from the standard index. Liquidity is good, not great.
Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV) ~3% Selects S&P 500 stocks with low volatility and low interest rate sensitivity. 0.25% A more nuanced pick. It mechanically avoids tech because tech is often volatile and rate-sensitive. I like the dual-factor approach. Held up remarkably well during rate hikes.
Vanguard Value ETF (VTV) ~5% Tracks the CRSP US Large Cap Value Index. 0.04% The king of low-cost, indirect tech exclusion. You get massive diversification into financials, healthcare, and energy. This is a core holding in my own "defensive" sleeve. The tiny fee is a huge long-term advantage.
Pacer US Cash Cows 100 ETF (COWZ) ~10% Focuses on companies with high free cash flow yield. 0.49% Tech exposure comes from cash-rich, mature firms like Oracle, not hyper-growth names. This fund is heavy on energy, industrials, and healthcare. It's more expensive but offers a unique fundamental metric. I use it as a tactical holding.
Global X U.S. Infrastructure Development ETF (PAVE) ~2% Targets companies involved in infrastructure development. 0.47% A thematic home run for avoiding tech. It's all about construction, engineering, materials, and machinery. Perfect for someone who believes in a long-term infrastructure cycle. More volatile than you might think, but moves to its own drumbeat.

Notice I didn't just list five funds with 0% tech. Why? Because sometimes a 5% tech exposure in a fund like VTV is a worthwhile trade-off for ultra-low costs and immense diversification. Rigid exclusion can limit your options unnecessarily.

A Closer Look: SPXT in Action

Let's dissect SPXT, the pure-play ex-tech ETF. Its top holdings are companies like Berkshire Hathaway, UnitedHealth Group, and ExxonMobil. The sector weightings tilt heavily toward Financials (over 20%), Healthcare (about 15%), and Industrials.

I tracked it against the standard S&P 500 ETF (SPY) for a year. When tech rallied hard, SPXT lagged—sometimes by a wide margin. It was frustrating to watch. But during periods of tech sell-offs or when interest rates rose, SPXT was the calm in the storm. Its performance wasn't about winning the race; it was about providing a smoother ride. That's the psychological benefit many investors truly need.

Building Your Strategy: It's More Than Just Picking a Fund

Buying one of these ETFs isn't a set-it-and-forget-it move. You need a plan.

Allocation, Not Replacement: Unless you're radically bearish on tech, don't swap your entire core holding. Instead, allocate a portion (say, 20-30%) to a non-tech fund to dampen overall volatility. Think of it as portfolio insurance.

Pair with a "Tech Lite" Core: Consider using a fund like the Invesco S&P 500 Equal Weight ETF (RSP) as a core holding. It still has tech, but at roughly 14% weight instead of 30+, because every stock gets the same allocation. Then, complement it with a pure ex-tech fund like SPXT to fine-tune your exposure.

Watch for Overlap: If you buy SPXT (0% tech) and also own a Financials sector ETF, you're doubling down on banks. That might be your intention, but be aware of it. Use a portfolio overlap tool—many brokers offer them for free.

Common Mistakes (And How to Avoid Them)

I've seen investors, including my past self, stumble here.

Mistake 1: Chasing past performance. After a tech downturn, ex-tech funds look brilliant. Buying at that peak often means missing the tech rebound. Decide based on your long-term risk tolerance, not recent headlines.

Mistake 2: Ignoring international exposure. A US-focused ex-tech ETF still leaves you exposed to a single economy. For true diversification, consider a global ex-tech or international value ETF. The iShares MSCI EAFE Value ETF (EFV) has minimal tech exposure.

Mistake 3: Forgetting about fees. Some thematic or smart-beta ex-tech funds charge 0.50% or more. Over 20 years, that drag can eat a significant portion of your returns. Always weigh the cost against the specific benefit you're getting.

Your Questions Answered

Aren't I missing out on growth by excluding the entire tech sector?
Possibly, yes. That's the explicit trade-off. The goal isn't maximum growth; it's managed risk and diversification. Many "old economy" sectors like industrials, financials, and energy can have powerful growth cycles, just with different drivers. The point is to have a portfolio that doesn't rise and fall solely on the fortunes of a few tech giants.
How do I know if an ETF's "technology" definition matches mine? What about companies like Tesla or Meta?
This is a critical, often overlooked detail. Index providers use classification systems. The most common is the Global Industry Classification Standard (GICS). Under GICS, Tesla is Consumer Discretionary (it's considered an auto manufacturer), and Meta is Communication Services. A fund that excludes only the "Information Technology" sector would still hold them. You must read the index methodology to see exactly which sectors or industries are excluded. For a true broad tech avoidance, you might need a fund that excludes both Info Tech and Communication Services.
What's the tax implication of switching into an ex-tech ETF?
If you're selling existing holdings in a taxable account to buy these ETFs, you may trigger capital gains taxes. A smarter move is often to direct your new investment contributions toward the ex-tech fund, gradually shifting your allocation without an immediate tax bill. Always consult a tax advisor for your specific situation, but this "flow-based" adjustment is a standard, low-friction strategy.
Can I find an ex-tech ETF that also focuses on ESG (Environmental, Social, Governance) criteria?
Yes, but your options narrow significantly. You're layering two exclusionary screens. Some ESG funds inherently have low tech weights because they avoid big tech due to governance or social concerns. You'd need to screen for ESG funds and then check their sector breakdowns. A potential starting point could be a value-oriented ESG fund, as the value tilt often reduces tech exposure.

Finding an ETF that excludes technology is a rational step for any investor feeling overexposed to one sector. It's a move toward balance. The funds I've outlined—from the pure exclusion of SPXT to the strategic tilt of VTV—offer concrete paths to achieve that. Remember, the best choice depends on your specific fear: is it volatility, valuation, or simply overconcentration? Define that first, then pick the tool that fits. My own portfolio is calmer for having made this adjustment, and yours can be too.