Large tech stocks such as Google and Facebook have excelled this year. And while the S&P 500 has lost 4 percent this year, the Nasdaq 100 index, which tracks large cap tech stocks, is up almost 3 percent year to date.
However, the ETF that tracks the Nasdaq 100, the QQQ, could be a risky choice for investors, according to one trader.
Stacey Gilbert, head of derivatives strategy at Susquehanna, said investors are currently pricing in a higher-risk premium for QQQ than for the SPDR S&P 500 ETF (SPY). In contrast, small-cap stocks have some of the smallest risk premiums across the board, she said.
"In terms of where investors are positioning right now, quite honestly they do see more risk to the Q's here than they do the S&P 500, although they do see risk to both," Gilbert said Tuesday on CNBC's "Power Lunch."
Gilbert also pointed out that the QQQ is heavily skewed by its weightings. Apple shares, which have fallen more than 8 percent in the last three months, constitute more than 13 percent of the ETF. QQQ also comprises many biotechnology names, such as Gilead, Amgen, Biogen and Celgene.
The ETF that tracks biotechnology stocks, IBB, has gained more than 17 percent year to date.
But Albert Brenner, director of asset allocation strategy at People's United Wealth Management, also sees more risk to biotech stocks in particular.
"Although there are opportunities there, I think that one needs to be cautious in looking at that particular sector," Brenner said Tuesday on "Power Lunch."