IYW ETF

If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.

IYW has delivered a total return over 70% since March 2023, driven by AI hype and strong performance of semiconductor stocks like Nvidia. Despite its strong performance, IYW's valuation is now expensive with a forward P/E ratio of 28.6x, higher than pandemic peaks. The technology sector's high volatility and potential decline in AI demand pose significant downside 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.

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.