Image: BigstockWall Street has been on a remarkable rally lately, buoyed by a surge in technology stocks. The artificial intelligence (AI) craze, hopes of rate cuts, and the rising share of the “Magnificent Seven” have been driving the space. Notably, the technology sector is the clear leader of the 2024 market rally so far.  While many ETFs have powered the sector from a year-to-date look, we have highlighted five from different industries that are leading the way. These are VanEck Vectors Semiconductor ETF (SMH – Free Report), First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT – Free Report), AXS Esoterica NextG Economy ETF (WUGI – Free Report), Clockwise Core Equity & Innovation ETF (TIME – Free Report), and ProShares Nanotechnology ETF (TINY – Free Report).

Solid Sector Growth Trends
The artificial intelligence boom will continue to fuel the rally in the sector, with companies investing huge sums in this technology. The expansion of AI applications holds the promise of ushering in fresh opportunities for growth within the sector. According to a recent report by Grand View Research, the global artificial intelligence market is expected to witness a CAGR (2024-2030) of 36.6% to reach $811.75 billion by 2030.The Fed, in its latest meeting, penciled in one rate cut this year and foresees four cuts in 2025. The central bank has altered the language in its statement, noting that there has been “modest further progress toward the committee’s 2% inflation objective.”Previously, the statement pointed to a “lack” of further progress. This signals a period of higher interest rates for a while. Tech titans have shown strong resilience amid such a scenario. And, when the Fed starts cutting rates later this year, technology stocks will receive a boost. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.The “Magnificent Seven” is the biggest engine of growth for the technology sector and the S&P 500 as a whole. It now accounts for 31% of weightage in the S&P 500.NVIDIA (NVDA) recently topped $3 trillion in market cap and became one of the most valuable companies in the United States. The stock has soared 132.2% so far this year, while Meta Platforms (META) and Alphabet (GOOGL) have risen 34.9% and 24%, respectively. Apple (AAPL) reclaimed the most valuable company title this week with a market cap of $3.3 trillion, edging out Microsoft’s (MSFT) market cap of $3.2 trillion.Further, cutting-edge technologies, including cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain, and 5G technology, will continue to drive the sector.Meanwhile, worldwide IT spending is expected to increase 8% year-over-year to $5.06 trillion this year, according to the latest forecast by Gartner. This will put worldwide IT spending on track to surpass $8 trillion well before the end of the decade. Higher spending across software, data center systems, IT services, and semiconductors will provide another boost to the sector.Moreover, the tech titans have strong balance sheets, durable revenue streams, and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.

ETFs to Buy – VanEck Vectors Semiconductor ETF (SMH – Free Report) – Up 52.8%
The VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. The fund follows the MVIS US Listed Semiconductor 25 Index, which measures the overall performance of companies involved in semiconductor production and equipment. The ETF holds 26 stocks in its basket.The fund has managed assets worth $22.2 billion, and it charges 35 bps in annual fees and expenses. The ETF is heavily traded with a volume of 7 million shares per day, and it has a Zacks ETF Rank #1 (Strong Buy), with a High risk outlook.

First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT – Free Report) – Up 45.5%
This ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets, and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem.The ETF holds 30 stocks in its basket, and it charges 85 bps in fees per year from investors. It has amassed $60.6 million in its asset base, and it trades in an average daily volume of 59,000 shares.

AXS Esoterica NextG Economy ETF (WUGI – Free Report) – Up 35.5%
This fund is an actively managed ETF that invests in stocks of companies that benefit from the ever-evolving digital economy. It holds 31 stocks in the basket.The AXS Esoterica NextG Economy ETF has accumulated $30.4 million in its asset base, and it charges 75 bps in fees per year. It trades in a volume of 4,000 shares a day on average.

Clockwise Core Equity & Innovation ETF (TIME – Free Report) – Up 28.9%
The Clockwise Core Equity & Innovation ETF is a cutting-edge fund designed for investors seeking exposure to long-term core growth opportunities, balanced with emerging technologies that are shaping the future. It holds 34 stocks in its basket, with each making up for no more than 9% of assets.The ETF has gathered $22.6 billion in its asset base, and it charges 95 bps in fees per year from investors. It trades in an average daily volume of 6,000 shares.

ProShares Nanotechnology ETF (TINY – Free Report) – Up 27.6%
Finally, the ProShares Nanotechnology ETF invests in companies that help businesses use nanoscale technology to transform lives and revolutionize industries. It follows the Solactive Nanotechnology Index and holds 30 securities in its basket, with none accounting for more than 5.8% share.The ETF has accumulated $6.5 million in its asset base, and it trades in an average daily volume of 2,000 shares. It charges 58 bps in fees annually from investors.More By This Author:5 ETF Zones To Benefit As Inflation Cools In May ETFs To Make The Most Of The AI-Powered Utility SectorProfit From These ETFs On Dollar Strength