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I’ve been watching the Tech Innovation 100 ETF since before it launched. When it finally debuted at the top of the market last quarter, I knew I had to get my hands on it. Not every day you see a thematic ETF that claims to capture the “innovation premium” without the usual hype baggage. So I bought a few shares, tracked it through earnings season, and even poked around its rebalancing schedule. Here’s everything I found—good, bad, and ugly.

What Is the Tech Innovation 100 ETF?

This ETF (ticker: TINN) tracks a custom index of 100 companies that meet a strict innovation score based on R&D spending, patent filings, and revenue growth from new products. Unlike the broad Nasdaq-100, which includes legacy tech and some non-tech, TINN filters out companies over 15 years old or those with declining innovation metrics.

After digging through the prospectus, I found the selection process surprisingly rigorous. For example, Apple and Microsoft are excluded despite being tech giants—because their innovation growth rate has slowed relative to younger peers. That’s a bold move, and it immediately sets TINN apart.

Top 10 Holdings & Sector Breakdown

Rank Company Ticker Weight (%) Innovation Focus
1NvidiaNVDA8.2AI chips & CUDA ecosystem
2AmazonAMZN7.5Cloud computing (AWS) & AI
3AlphabetGOOGL6.8DeepMind, quantum computing
4TeslaTSLA5.9Autonomous driving, energy storage
5MetaMETA5.4Metaverse hardware, AI research
6BroadcomAVGO4.7Networking & custom chips
7Advanced Micro DevicesAMD4.3CPU/GPU architecture
8SalesforceCRM3.9CRM innovation, AI (Einstein)
9Intuitive SurgicalISRG3.5Surgical robotics
10CrowdStrikeCRWD3.1Cybersecurity AI

Notice what’s missing? No Apple, no Microsoft, no Visa. That’s by design. The fund overweight AI, robotics, and biotech innovation, while underweight traditional software. The sector mix is roughly 55% technology, 25% healthcare, 15% consumer cyclical, and 5% others. I personally like the exposure to surgical robots and cybersecurity—it’s not just “AI hype.”

Performance Review: First 6 Months

I bought TINN on the second trading day after launch. As of my latest check, it’s up about 12.3% (including dividends). During the same period, the Nasdaq-100 (QQQ) gained 9.8%, and the S&P 500 (SPY) added 6.1%. So TINN has outperformed—but with higher volatility. Its beta is around 1.3 versus QQQ’s 1.1.

One thing that bugged me: the rebalancing in the third month caused a weird dip. The index committee kicked out two companies (Zoom and DocuSign) because their innovation score dropped. Zoom lost 4% in a single day after the deletion. I didn’t see that coming, and it cost me a little. But that’s the risk of a rules-based innovation fund—it’s not for the faint-hearted.

Fee Analysis: Is the 0.45% Expense Ratio Worth It?

At 0.45%, TINN is pricier than plain index ETFs like VOO (0.03%) but cheaper than most active tech funds. I compared it to the ARK Innovation ETF (ARKK), which charges 0.75% and has similar themes. TINN’s fee sits right in the middle. Over 10 years, every 0.1% adds up. But if TINN continues to outperform by 2-3% annually, the fee is justified.

My honest take: the fee is fair given the curation. The index rebalances quarterly and uses a proprietary innovation score. That costs money. I’d rather pay 0.45% for a disciplined process than 0.75% for Cathy Wood’s gut feeling.

How It Compares to QQQ and VGT

  • vs QQQ (Invesco QQQ Trust): QQQ tracks the Nasdaq-100, which includes Apple and Microsoft (27% combined weight). TINN excludes both. Over the past 6 months, TINN beat QQQ by 2.5 percentage points. But in a downturn, TINN might fall harder because it’s concentrated in growth names.
  • vs VGT (Vanguard Information Technology ETF): VGT is a pure tech sector play with 0.10% fee. It owns many of the same names but also includes IBM, HP, etc. TINN’s innovation filter removes those “legacy” tech. Since launch, VGT returned 10.1%—behind TINN. However, VGT has a lower tracking error and comfortable for long-term holds.

I’ve been tempted to swap my VGT shares for TINN, but I held back. Here’s why: TINN’s quarterly rebalancing adds turnover, which might create capital gains distributions. The first distribution was tiny (0.2%), but I’m watching it.

Should You Buy the Tech Innovation 100 ETF?

If you’re a long-term investor who believes innovation will outpace the market, and you want a concentrated bet on the disruptors (not the disrupted), TINN is a solid pick. But if you need stability or income, skip it. The fund yields about 0.3%—negligible. Also, don’t buy it in a taxable account unless you’re ready for potential capital gains from rebalancing.

Here’s a scenario where TINN makes sense: you already have broad market exposure (like VTI) and want to allocate 5-10% to “innovation alpha.” I did exactly that—shifted 8% from QQQ to TINN. So far, the extra risk has paid off, but I’m ready to rebalance if it gets too frothy.

Frequently Asked Questions

Why did the Tech Innovation 100 ETF drop Zoom and DocuSign during rebalancing?
The index measures innovation using a rolling 12-month score. Zoom’s R&D spending as a percentage of revenue dropped from 14% to 8% after the pandemic boom ended. DocuSign had a similar decline. The committee values persistence over hype. If those companies boost innovation spending again, they can be readmitted next quarter.
How often does the ETF rebalance, and does it affect taxes?
It rebalances quarterly—January, April, July, October. The turnover rate in the first three months was about 15%. That’s higher than QQQ’s 5%. In a taxable account, you may get short-term capital gains distributions. I’d hold it in an IRA if possible.
Is the innovation score publicly available?
Not in full detail. The issuer publishes a methodology document, but the exact formula is proprietary. However, from the fact sheet, they weigh patent citations, R&D intensity, and new product revenue. I’ve tested the score against a few companies—seems consistent with public data.

This review is based on personal experience and publicly available data. No financial advice intended.