iShares Expanded Tech Sector ETF

IGM

Market cap $9.61B

BlackRock is the world's largest investment manager, with a whopping $12.5 trillion in client assets in its custody. Around $3.3 trillion of that sum is parked in exchange-traded funds (ETFs) operated by its iShares subsidiary.

iShares Expanded Tech Sector ETF offers diversified North American tech exposure, including communications and consumer discretionary sectors, with a low expense ratio. IGM's top holdings include AAPL, MSFT, NVDA, and AVGO, benefiting from AI-driven growth and data center infrastructure investments by major tech players. The ETF has outperformed many peers due to its broader sector diversification, capturing differentiated performance beyond pure technology indices.

If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares Expanded Tech Sector ETF (IGM), a passively managed exchange traded fund launched on March 13, 2001.

Smart money isn't always smart, and following it blindly is unlikely to pay off.

Tech ETFs can deliver superb tax efficiency and growth potential, but investors must be aware of high volatility, concentration risk and stretched valuations.

I maintain my buy rating on iShares Expanded Tech Sector ETF, expecting strong returns as tech stocks benefit from robust earnings, AI demand, and favorable macro conditions. IGM's diversified portfolio, with heavy exposure to both IT and communication sectors, positions it to outperform peers as mega-cap techs surge. The ETF has outperformed rivals like IYW and VGT, offers a lower valuation, and boasts strong momentum, liquidity, and dividend growth.

The technology sector is currently dominated by the artificial intelligence (AI) gold rush, which is generating significant investor excitement and driving historic market performance. The meteoric rise of companies like NVIDIA NASDAQ: NVDA has demonstrated the immense potential of this technological shift, leaving many investors with a critical question: How can one invest in an entire revolution without accepting the high-risk gamble of picking individual stocks?

The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.

The iShares Expanded Tech Sector ETF (IGM 1.89%) is an exchange-traded fund (ETF) that offers investors exposure to a diverse portfolio of 283 stocks from the technology and technology-related industries.

IGM has seen a significant rebound but remains fairly valued with a mixed technical outlook, leading me to maintain a hold rating. The ETF's heavy exposure to the Mag 7 stocks and high volatility are key factors influencing its performance and cautious stance. IGM's P/E ratio has contracted to 23.5x, making valuations less stretched, but technical indicators suggest potential consolidation and resistance.