05-07-2025
Looking for Exposure to Microsoft Stock (MSFT)? Try These Two ETFs
Microsoft's (MSFT) growth prospects look robust, driven by its push into AI, cloud infrastructure, and enterprise software. Its AI-powered tools, such as Copilot, are now used by over 70% of Fortune 500 companies. Also, the tech giant is expanding its AI footprint globally, including a $400 million investment in Switzerland. Thus, investors looking for exposure to MSFT stock may consider investing in these two ETFs: Vanguard Information Technology ETF (VGT) and iShares Global Tech ETF (IXN).
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Let's take a deeper look at these two ETFs.
Vanguard Information Technology ETF
The VGT ETF provides investors with exposure to technology stocks, including companies in software, semiconductors, internet, and other technology-related sectors. This ETF tracks the MSCI U.S. Investable Market Index/Information Technology 25/50 Index.
MSFT stock constitutes 15.11% of the ETF's holdings. Apart from MSFT, some of the top stocks in the VGT ETF are Nvidia (NVDA), Apple (AAPL), and Broadcom (AVGO). Overall, the ETF has $94.11 billion in assets under management (AUM). Also, it has an expense ratio of 0.09%. The VGT ETF has returned 38.2% in the past three months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 321 stocks held, 254 have a Buy, 60 have a Hold, and seven have a Sell ratings. At $725.62, the average VGT ETF price target implies a 7.66% upside potential.
iShares Global Tech ETF
The IXN ETF is ideal for long-term growth investors seeking global tech exposure. The ETF aims to track the performance of the S&P Global 1200 Information Technology Index, which includes tech giants from the U.S., Europe, and Asia.
Importantly, MSFT accounts for 17.75% of IXN's total holdings. Some of the top holdings in IXN ETF include NVDA, Oracle (ORCL), and Palantir (PLTR). Overall, the ETF has $296.33 million in AUM and an expense ratio of 0.68%. Over the past three months, the IXN ETF has generated a return of 37.7%.
On TipRanks, IXN has a Moderate Buy consensus rating based on 88 Buys, 32 Holds, and one Sell assigned in the last three months. At $97.95, the average IXN ETF price target implies 4.95% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to Microsoft, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider VGT and IXN, as these ETFs offer exposure to MSFT stock.
