iShares US Technology ETF

IYW

Market cap $24.9B

The Roundhill Generative AI & Technology ETF carries a higher expense ratio of 0.75% compared to 0.38% for the iShares U.S. Technology ETF. The Roundhill Generative AI & Technology ETF provides a significantly higher dividend yield of 1.80% while iShares U.S. Technology ETF yields just 0.10%.

Apple's $30B Broadcom chip deal highlights tech ETFs with exposure to both companies as investors seek diversified AI-related opportunities.

The Invesco QQQ ETF (QQQ), which many use as a proxy for the tech sector, is only 67% invested in tech stocks. The Vanguard Information Technology ETF (VGT) offers better diversification and a strong long-term track record.

State Street Technology Select Sector SPDR ETF offers a significantly lower expense ratio and larger assets under management than iShares U.S. Technology ETF. iShares U.S. Technology ETF maintains a broader portfolio with 148 holdings compared to the 74 positions in the State Street fund.

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

Roundhill Investments Generative AI & Technology ETF carries a significantly higher expense ratio than the iShares U.S. Technology ETF iShares U.S. Technology ETF provides broader exposure to 139 holdings compared to the more concentrated portfolio of 42 holdings in Roundhill Investments Generative AI & Technology ETF Roundhill Investments Generative AI & Technology ETF has demonstrated higher historical volatility and a deeper maximum drawdown than its iShares counterpart Recent market volatility around AI and tech stocks should prompt investors to consider the risks these funds present in addition to their recent large gains

Fidelity MSCI Information Technology Index ETF (FTEC) offers a lower expense ratio and a higher dividend yield than iShares U.S. Technology ETF (IYW). Both funds are highly concentrated in the same top holdings, though FTEC provides more than double the total number of positions.

Technology stocks' strong performance since their late-March low is more than a little bit unusual. Although optimism about AI's potential is a natural driver of these gains, the expected results aren't guaranteed.

FTEC carries a significantly lower expense ratio of 0.08% compared to 0.38% for IYW. Both funds are highly concentrated in the technology sector, but FTEC holds more than double the number of securities found in IYW.

SOXX offers a lower expense ratio and higher dividend yield than IYW. SOXX has outperformed IYW in both one- and five-year total returns but exhibits higher volatility.