IOO ETF

US stocks surged post-Trump re-election, but foreign shares underperformed due to a strong US Dollar Index, raising concerns about future market risks. Downgrade iShares Global 100 ETF from buy to hold due to potential post-election move digestion and broader market advance over the past 25 months. IOO has a fair valuation with high-tech exposure, but technical indicators suggest momentum is slowing, and resistance is apparent at $101.

iShares Global 100 ETF provides exposure to large international publicly traded companies, seeking to replicate the S&P Global 100 Index performance. The fund has 102 holdings, with main exposures in the U.S., Technology sector, and high returns on equity from top holdings. Valuation suggests IOO is undervalued, with potential for long-term growth despite higher expense ratio compared to other funds.

iShares Global 100 ETF is a global equity fund with a higher exposure to the information technology sector. IOO has delivered solid returns since October 2022, outperforming the S&P 500 index. Despite a high allocation to U.S. stocks, IOO provides international diversification, as most U.S. stocks in its portfolio have a significant chunk of their revenues outside of America.

iShares Global 100 ETF offers exposure to large international companies, but is still largely US-focused. IOO has a high allocation towards the Information Technology sector, which could pose a risk. IOO's expense ratio is relatively higher compared to other similar ETFs, potentially impacting overall returns.

IOO has a heavy skew towards megacap IT stocks, raising concerns about AI optimism and consumer electronics demand. Despite being marketed as a global and diversified ETF, IOO's exposure to US stocks and higher expense ratios make it less efficient. The ETF's performance is driven by AI fervor and trends in electronics demand, but there are concerns about the sustainability of these factors.

iShares Global 100 ETF has a significant weighting in favor of the U.S. market, raising questions about its true global diversification. The fund is likely undervalued, with a matching beta on par with the S&P 500 U.S. equity index. Despite the expense ratio, IOO offers good value and appeal with its non-U.S. diversification offering additional appeal.

For investors seeking momentum, iShares Global 100 ETF IOO is probably on radar. The fund just hit a 52-week high and is up 24% from its 52-week low of $58.45 per share.