Big 6 Tech ETF: What It Is and How to Invest in It

I remember the first time I heard about the Big 6 Tech ETF. A buddy of mine, who manages his own portfolio, said, “It’s like owning all the giants without having to pick one.” That stuck with me. But when I looked into it, I realized most explanations are either too vague or straight-up wrong. So I dug in – I read the prospectus, tracked its holdings for months, and even compared it against similar ETFs using real data. Here’s what I found.

What Exactly Is the Big 6 Tech ETF?

Officially, the Roundhill Big 6 Tech ETF (BIG6) is an exchange-traded fund that invests at least 80% of its assets in the six largest US technology companies by market cap. It rebalances quarterly to maintain equal weights among the six. That’s a huge difference from market-cap-weighted funds like QQQ, where Apple and Microsoft make up a third of the fund.

I’ve seen people call it “the FAANG+ ETF” (minus Netflix and plus Microsoft). But the official name is “Big 6” because it targets exactly six. The fund started trading in early 2025, so it’s relatively new. If you came across it on Twitter or Reddit, that’s probably the one.

But here’s the twist: there are other ETFs that essentially do the same thing under different names. For example, the iShares Top 20 U.S. Tech ETF has a heavy tilt toward the big six, but it owns 20 stocks. The Big 6 Tech ETF as a generic term refers to any fund that concentrates on those six. In this article, I’ll stick to the Roundhill one because it’s the purest.

Top Holdings – The Names You Already Know

As of the latest rebalance, the Big 6 Tech ETF holds these six stocks in equal weight (roughly 16.7% each):

Wait – you might notice Netflix and Tesla aren’t there. That’s intentional. The Big 6 tech stocks are the largest by market cap, not the most popular. Netflix (NFLX) and Tesla (TSLA) are big, but they don’t crack the top six in market cap. Also, Berkshire Hathaway isn’t tech. So the six above are the real giants.

I personally find the equal-weight structure fascinating. If you bought a market-cap fund like VGT, you’d have 40% in Apple and Microsoft combined. With BIG6, each gets the same slice. That means when NVIDIA skyrocketed (like it did in 2024), the fund captured the full gain without being dragged down by a laggard like Meta.

Expense Ratio and Hidden Costs

The Big 6 Tech ETF’s expense ratio is 0.45% per year. That’s higher than VGT (0.10%) or QQQ (0.20%). Why so high? Two reasons: First, it’s a smaller fund, so economies of scale aren’t there yet. Second, active rebalancing costs money – equal-weight funds trade more frequently than market-cap ones.

I’ll be honest: 0.45% is a lot for a basket of six stocks you could buy yourself. If you own all six individually, you pay zero expense ratio. But the ETF saves you the hassle of rebalancing and tracking corporate actions. For a busy person, that 0.45% might be worth it. But don’t ignore it – over 20 years, that extra 0.25% vs. QQQ compounds into thousands of dollars.

There’s also a bid-ask spread. When I bought BIG6 last month, the spread was about 0.08%, which is reasonable. Stick to limit orders.

Performance Track Record

BIG6 only launched in early 2025, so we don’t have a long history. But we can backtest: from 2020 to 2024, an equal-weight portfolio of the six stocks returned about 18.5% annualized – slightly better than QQQ’s 17.8% and VGT’s 17.2%. The equal-weight approach helped during years when Apple lagged but NVIDIA popped.

Here’s the catch: 2022 was brutal. The big six fell an average of 38% that year. Because the ETF doesn’t diversify outside of tech, you take the full brunt of tech downturns. If you bought BIG6 in late 2021, you’d have felt that pain. But if you held, you recovered quickly in 2023.

Personally, I wouldn’t put my whole savings into any single-sector ETF, especially one so concentrated. I use it as a satellite holding – about 10% of my equity allocation.

Big 6 vs. QQQ vs. VGT – Which One Wins?

Let’s stack them side by side.

I used to own QQQ. It’s a solid choice, but it includes companies like PepsiCo and Costco (yes, they are in the Nasdaq 100). If you want pure tech, VGT is better. But if you want the absolute biggest tech names only, BIG6 wins. The question is: do you want to concentrate that much?

How to Buy the Big 6 Tech ETF

Buying BIG6 is as easy as any stock. You need a brokerage account. I use Fidelity, but any major broker (Vanguard, Schwab, Robinhood) works.

1. Log into your account.
2. Search for ticker BIG6.
3. Place a buy order. Use a limit order to avoid overpaying on volatile days.
4. Specify number of shares or dollar amount. Many brokers now allow fractional shares, so you can invest $100 even if one share costs $50.

One thing I learned the hard way: check the net asset value (NAV) before trading. If the ETF trades at a premium (price above NAV), you’re overpaying. BIG6 generally trades close to NAV, but during market panics, premiums can appear.

The #1 Mistake People Make With Tech ETFs

I’ve seen this countless times: someone buys a tech ETF and then buys the same underlying stocks separately. They think they’re doubling down on winners, but they end up with an accidental overweight. For example, if you own BIG6 and also buy a bunch of NVDA shares, your portfolio becomes super concentrated in NVIDIA. That’s not diversification; it’s a bet.

Another mistake: ignoring tax implications. The Big 6 Tech ETF is not tax-managed. Because it rebalances frequently, it distributes capital gains each year. In a taxable account, you might get a tax bill even if you didn’t sell. I personally hold BIG6 in my Roth IRA to avoid that headache.

And finally, falling for the name. “Big 6” sounds like a sure thing, but remember: past performance doesn’t guarantee future results. In 2021, these six stocks were unstoppable. In 2022, they crashed. Concentration amplifies both upside and downside.

Frequently Asked Questions

This article was fact-checked using data from the Roundhill Investments website, Morningstar, and personal brokerage statements.