iShares US Technology ETF

IYW

Market cap $21B

VGT charges a much lower expense ratio and offers a higher yield than IYW. IYW has delivered stronger five-year growth, but with a slightly higher drawdown and greater volatility.

XLK charges a much lower expense ratio and has a higher dividend yield than IYW Both ETFs have delivered nearly identical 1-year returns, but XLK experienced a smaller five-year drawdown IYW holds more stocks and has a modest tilt toward communication services, while XLK stays tightly focused on the S&P 500's tech sector These 10 Stocks Could Mint the Next Wave of Millionaires ›

Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on May 15, 2000.

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 rate both IYW and IGM as buys, but prefer IGM for its superior diversification and lower valuation multiples amid heightened market concentration. IGM offers broader exposure with 277 holdings and a 26.43% top 3 weight, versus IYW's 140 holdings and 44.85% top 3 concentration. IGM's lower P/E (28.79) and P/B (7.70) versus IYW (P/E 29.36, P/B 8.31) provide a better risk/reward profile in today's high-multiple environment.

AI stocks stay elevated as FOMO drives momentum, but strong earnings ease bubble worries. Here's why risks remain -- and the ETFs best positioned to benefit.

ETFs like XLG provide a diversified way to benefit from the Mag 7's Q3 earnings surge and the positive momentum expected going forward.

Artificial intelligence didn't just turbocharge Black Friday shopping this year — it quietly became retail's most influential middleman.

AI-fueled record Black Friday spending and soaring e-commerce traffic may lift AI-focused ETFs like IYW, AIQ, FDN, XT and BOTZ amid strong tech and online retail demand.

Vanguard Information Technology ETF charges a much lower expense ratio and offers a higher yield than iShares US Technology ETF IYW has delivered a slightly higher 1-year return, but VGT has a milder historical drawdown and holds over twice as many stocks VGT is nearly six times larger by assets under management compared to IYW.