Average Daily Volume
936.4K
Fund Overview
The iShares U.S. Technology ETF (IYW) is an exchange-traded fund that provides investors with exposure to U.S. technology companies. The fund seeks to track the investment results of the Russell 1000 Technology RIC 22.5/45 Capped Index, which measures the performance of the technology sector within the Russell 1000 Index. IYW primarily invests in large-cap U.S. technology firms, including companies involved in software, hardware, semiconductors, and IT services. The ETF offers a focused way to gain access to leading tech innovators and is designed for investors seeking growth potential through technology sector exposure. With a diversified portfolio of top-tier tech stocks, IYW is a popular choice for those looking to capitalize on the dynamic and rapidly evolving tech industry.
- Asset Class
-
Equity
- Industry
-
Broad Technology
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 0.18 %
- Currency Hedged
-
No
- Portfolio Turnover
-
11 %
- Dividend Date
-
Why Invest in the IYW ETF?
Potential Benefits
- Provides concentrated exposure to leading U.S. technology companies, offering growth potential in a high-performing sector.
- Diversifies across various tech sub-sectors, including software, hardware, and semiconductors, reducing single-stock risk.
- Competitive expense ratio compared to actively managed tech funds, making it cost-effective for long-term investors.
- High liquidity due to its large asset base and trading volume, allowing for easy entry and exit.
- Tracks a well-established index (Russell 1000 Technology RIC 22.5/45 Capped Index), providing transparency in holdings.
Potential Risks
- Sector concentration risk: Heavy reliance on the technology sector makes the fund vulnerable to tech-specific downturns.
- Valuation risk: Many tech stocks trade at high multiples, which could lead to volatility during market corrections.
- Regulatory risks: Tech companies face increasing scrutiny from governments worldwide, potentially impacting performance.
- Competitive risks: Rapid innovation in the tech sector could render some holdings obsolete over time.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
-0.7%
|
-4.4%
|
-4.3%
|
+20.2%
|
+16.0%
|
-0.2%
|
-5.6%
|
+5.6%
|
+5.4%
|
+2.9%
|
-
|
-
|
| 2025 |
+0.1%
|
-3.1%
|
-9.1%
|
+1.7%
|
+10.8%
|
+9.5%
|
+4.6%
|
+0.3%
|
+7.8%
|
+6.2%
|
-4.4%
|
+0.5%
|
| 2024 |
+2.9%
|
+5.5%
|
+1.4%
|
-5.1%
|
+8.2%
|
+8.6%
|
-2.8%
|
+1.0%
|
+2.7%
|
-0.6%
|
+5.7%
|
+0.2%
|
| 2023 |
+11.0%
|
+0.7%
|
+11.5%
|
+0.2%
|
+10.8%
|
+5.7%
|
+4.4%
|
-1.9%
|
-5.8%
|
-1.1%
|
+13.1%
|
+4.9%
|
| 2022 |
-8.3%
|
-4.9%
|
+2.9%
|
-13.1%
|
-1.4%
|
-9.4%
|
+11.5%
|
-6.0%
|
-12.3%
|
+4.1%
|
+6.6%
|
-8.3%
|
| 2021 |
+0.8%
|
+1.3%
|
+1.0%
|
+6.1%
|
-0.6%
|
+7.6%
|
+3.8%
|
+4.9%
|
-6.4%
|
+9.0%
|
+2.7%
|
+1.4%
|
| 2020 |
+4.1%
|
-6.6%
|
-9.3%
|
+14.6%
|
+7.5%
|
+7.3%
|
+6.0%
|
+11.6%
|
-5.5%
|
-2.8%
|
+11.1%
|
+4.8%
|
| 2019 |
+8.9%
|
+5.4%
|
+4.1%
|
+6.7%
|
-9.6%
|
+7.9%
|
+4.6%
|
-2.9%
|
+1.9%
|
+3.8%
|
+5.5%
|
+4.2%
|
| 2018 |
+7.2%
|
+0.4%
|
-3.8%
|
-0.1%
|
+7.5%
|
-1.1%
|
+2.4%
|
+7.3%
|
-0.7%
|
-8.5%
|
-2.0%
|
-7.9%
|
| 2017 |
+4.7%
|
+4.9%
|
+2.6%
|
+2.2%
|
+4.3%
|
-2.9%
|
+3.6%
|
+3.4%
|
+0.3%
|
+7.8%
|
+0.9%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
16.0 % |
|
AAPL
|
APPLE INC |
15.4 % |
|
NVDA
|
NVIDIA CORP |
13.7 % |
|
META
|
META PLATFORMS INC CLASS A |
3.9 % |
|
AVGO
|
BROADCOM INC |
3.2 % |
|
GOOGL
|
ALPHABET INC CLASS A |
2.5 % |
|
CRM
|
SALESFORCE INC |
2.4 % |
|
IBM
|
INTERNATIONAL BUSINESS MACHINES CORP |
2.2 % |
|
ORCL
|
ORACLE CORP |
2.2 % |
|
GOOG
|
ALPHABET INC CLASS C |
2.1 % |
Top 10 holdings shown, out of 142 total holdings.
Related ETFs: IYW vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
IYW seeks to track the Russell 1000 Technology RIC 22.5/45 Capped Index, which includes U.S. technology companies from the Russell 1000 Index. The index employs a modified market-cap weighting methodology with capping rules to prevent excessive concentration in any single stock. The fund primarily holds common stocks of large-cap tech firms and is passively managed, aiming to replicate index performance with minimal tracking error. Rebalancing occurs quarterly to align with index changes, ensuring the portfolio remains representative of the technology sector.
Frequently Asked Questions
What is the expense ratio of IYW?
IYW has an expense ratio of 0.40%, which is competitive among technology-focused ETFs.
Does IYW pay dividends?
Yes, IYW pays quarterly dividends, though yields are typically lower than broader market ETFs due to the growth-oriented nature of tech stocks.
How does IYW differ from QQQ?
While both are tech-heavy, IYW focuses exclusively on U.S. technology companies, whereas QQQ tracks the NASDAQ-100, which includes non-tech stocks and has international exposure.
What percentage of IYW is invested in the top 10 holdings?
Approximately 60-65% of IYW's assets are typically invested in its top 10 holdings, reflecting the concentrated nature of the tech sector.
Is IYW suitable for conservative investors?
IYW may be too volatile for conservative investors due to its sector concentration. It's better suited for those with higher risk tolerance seeking growth exposure.
Industry Overview
The iShares U.S. Technology ETF (IYW) provides targeted exposure to the U.S. technology sector, which has been a key driver of market growth over the past decade. The tech industry is characterized by rapid innovation, high margins, and significant global demand for digital transformation. IYW invests in companies at the forefront of this evolution, including giants like Apple, Microsoft, and NVIDIA, as well as emerging players in cloud computing, AI, and cybersecurity. Investing in IYW allows investors to participate in the growth of transformative technologies while mitigating some risks through diversification across sub-sectors.
Alternative Comparison
Compared to XLK (Technology Select Sector SPDR Fund), IYW offers a slightly different composition, with greater exposure to semiconductor and hardware companies. While both track tech-focused indices, IYW's Russell 1000 Technology Index includes more mid-cap exposure than XLK's S&P 500 Tech Sector focus. VGT (Vanguard Information Technology ETF) is another close peer, but IYW tends to have higher weightings in top holdings, potentially offering more concentrated growth opportunities. Expense ratios are competitive across all three, making the choice largely dependent on specific sector exposure preferences.
Issuer Overview
iShares, a division of BlackRock, is the world's largest ETF provider, known for its extensive range of index-tracking funds. With over $3 trillion in assets under management, iShares offers investors reliable, low-cost access to various market segments. The issuer's strong reputation, robust infrastructure, and commitment to transparency make IYW a trusted choice for tech sector exposure.
Conclusion
IYW is a compelling option for investors seeking targeted exposure to the U.S. technology sector. With its diversified holdings, competitive expense ratio, and strong track record, the ETF provides an efficient way to invest in tech leaders and innovators. While sector concentration poses risks, the fund's focus on high-growth companies makes it suitable for investors with a long-term growth orientation and tolerance for volatility.
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