ETFs to Capture Google and Microsoft

Looking to grab Google(GOOG Quote), Microsoft(MSFT Quote) and other top tech names for your portfolio? Top ETFs such as S&P North American Technology Sector Index Fund(IGM Quote)(IGM Quote), Technology Select Sector SPDR(KLK Quote), PowerShares QQQ(QQQQ Quote) and iShares Dow Jones US Technology(IYW Quote) offer investors liquid, transparent exposure to top tech names and significant holdings in Google and Microsoft.

IYW tracks the largest public companies in the technology sector of the U.S. market. Since IYW is capitalization-weighted, it is designed to give you exposure to the biggest names in tech. Microsoft is currently the largest holding in IYW, comprising a whopping 11.20% of the fund. Google also rounds out IYW's top five with a 6.45% stake in the search engine giant. The top two heaviest weighted sectors in IYW are hardware with 59.2% and software with 26.52%. Year to date, IYW is up 27%, beating the S&P 500 by nearly 22%.

IGM tracks a different underlying index, but also has high concentrations of Google and Microsoft in its portfolio. While IBM(IBM Quote) is currently the top holding for IGM, with a 7.63% share of underlying assets, Microsoft and Google also make the top 10 holdings with 6.60% and 5.78% allocations, respectively. Hardware, at 57.22%, is the heaviest weighted sector in this portfolio as well. Software is the second largest sector with a 20.66% slice of the ETF. IGM has nearly identical year-to-date returns as IYW, up 28%.

While QQQQ is not a technology-specific ETF, it tracks a tech-heavy index -- the Nasdaq 100. QQQQ is comprised of the largest domestic and international non-financial companies listed on the Nasdaq, which means that tech investors will miss out on some NYSE listed tech firms when choosing this ETF. More than 62% of QQQQ is allocated to technology, and Google and Microsoft are the number 3 and 4 top components, with 5.01% and 4.72% stakes, respectively. QQQQ has returned slightly less than tech-exclusive IGM and IYW year to date -- 24.44% -- but could be a comforting alternative for tech-hungry investors seeking slightly more diversification.