IYW ETF

The iShares U.S. Technology ETF (IYW) started on May 15, 2000, and is a passively managed fund that aims to provide wide access to the broad technology sector of the stock market.

If you want to gain a wide understanding of the Technology - Broad sector in the stock market, consider the iShares U.S. Technology ETF (IYW). This is a passively managed exchange-traded fund that started on May 15, 2000.

Since March 2023, IYW has achieved a total return of over 70%, mainly due to excitement around AI and the strong performance of semiconductor companies like Nvidia. However, IYW is now considered expensive, with a forward P/E ratio of 28.6, which is higher than during the pandemic's peak. The technology sector is known for its volatility, and a possible drop in AI demand could present serious risks for IYW.

Many market-beating funds over the past 10 years have been focused on tech stocks. Microsoft, Apple, and Nvidia are often among the top three holdings in many growth-oriented funds.

The Technology Select Sector SPDR Fund (XLK) rebalanced last week. It swapped a large position in Apple for a large position in Nvidia.

On this week's episode of ETF Prime, host Nate Geraci spoke with Roxanna Islam, CFA, CAIA, head of sector & industry research at VettaFi. Islam and Geraci discussed a tech ETF rebalance and gave an outline for what to expect for spot ether ETFs.

Tech sector momentum driven by AI/Nvidia. The iShares U.S. Technology ETF tracks top tech stocks. High concentration risk with top 3 holdings making up 50% of the portfolio, expensive valuations, and sector volatility.

Investors seeking momentum may have iShares U.S. Technology ETF IYW on radar now. The fund recently hit a new 52-week high.

Nasdaq topped 17, 000 for the first time ever on Tuesday, thanks to the AI craze. We expect tech ETF areas to likely to remain strong no matter what happens in the broader economy and regardless of the Fed's imminent decision regarding interest rate policy.