The tech sector is among the best-performing corners of the market so far in 2025, with sector-wide returns of nearly 28% year-to-date (YTD) compared to over 17% for the overall S&P 500. In fact, the tech sector's performance—and the outsized returns of a handful of big names in particular—has been enough to prompt speculation among investors about an AI-related bubble that could be helping prop up other large chunks of the market that would otherwise be struggling.
Bubble or not, investors seeking major returns this year may have found success with tech stocks. Further, many tech-focused exchange-traded funds (ETFs) have managed to match or even outperform the broader sector thanks to their unique strategies and portfolios. Past performance is, of course, no guarantee that these ETFs will continue to shine, but so long as AI and related industries are booming, this momentum may continue.
