iShares Global Tech ETF

IXN

Market cap $6.67B

As the 2026 market landscape takes shape, artificial intelligence (AI) continues to serve as the primary catalyst for global equity performance.  According to BlackRock's 2026 outlook, AI remains the “dominant theme” for the investment community, fueling a capital-intensive expansion that is fundamentally supporting corporate earnings and broader macroeconomic growth.

I recommend the iShares Global Tech ETF with a "Buy" rating, driven by robust global AI and IT investment trends into 2026. IXN offers diversified technology exposure but is top-heavy, with 62% of assets in its top 10 holdings, predominantly U.S. mega-cap tech. While IXN provides some international exposure, its heavy U.S. weighting may not sufficiently hedge against U.S. equity risk for global allocators.

BlackRock's extensive ETF lineup, comprising roughly 200 funds, is offering a broad view of how long-term thematic and sector exposures have evolved.

I recommend a 60/40 split: 60% in IXN for large-cap US tech exposure 40% in XT for diversification and emerging growth. IXN captures current tech momentum with US giants like Nvidia, Microsoft, and Apple, but carries concentration and valuation risks. XT offers global, diversified exposure to mid- and small-cap innovators, healthcare, and industrials, hedging against large-cap overvaluation.

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

NVDA's surge past a $4T market cap spotlights AI's explosive growth and the ETFs riding this tech-fueled momentum.

I reiterate my buy rating on IXN, as the ETF continues to outperform the S&P 500 and hit new all-time highs. IXN's technical breakout above $90 signals further upside, with a measured move price target of $114 by year-end. While valuation is less attractive than in early 2024, strong momentum, mega-cap leadership, and global diversification support the bullish thesis.

With Trump exempting phones, computers, chips from new tariffs, buyers may now use the latest dip in Apple shares as a buying opportunity.

iShares Global Tech ETF is rated a hold due to strong long-term growth potential despite volatility and uncertainty from tariff policies. IXN's top holdings, Apple, Microsoft, and Nvidia, are mitigating tariff impacts through diversification and strategic actions, positioning each company for solid long-term returns. IXN has lagged behind competitors like QQQ, VGT, and XLK in 10-year average annual returns, and its higher expense ratio is a notable downside.

IXN offers global tech exposure, focusing on electronics, software, hardware, and international tech firms, but has underperformed its benchmark by ~20-30bps. Heavy semiconductor exposure (40.56%) and top holdings in Apple (19.21%) and Microsoft (17.34%) drive significant growth, closely tracking the Nasdaq 100. IXN comes with higher cost (41bps) compared to passive index funds like QQQM, which offers more diversification and less concentration in Apple and Nvidia.