The iShares Expanded Tech Sector ETF (NYSE Arca: IGM) tracks a market-cap-weighted index of U.S. and Canadian technology companies.
IGM offers a broad coverage of the North American technology sector. Aside from conventional technology stocks, the fund also includes tech-related stocks from other sectors — specifically internet retail companies.
While IGM is a North American fund, nearly all its assets are allocated to the United States. Seeking to provide a diversified exposure to the tech industry, its market-cap-weighted index caps each security’s weight at 8.5%. The index is reconstituted semi-annually and rebalanced quarterly.
Prior to Dec. 24, 2018, the fund was tracking the S&P North American Technology Index. The change in index was due to a new Communications Services sector developed at the end of 2018.
The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics substantially identical to the component securities of its index. A significant portion of the underlying index is represented by securities of companies in the technology industry or sector. It is non-diversified.
Top holdings in IGM include Apple, Inc. (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL), to name just a few of the mega-cap, tech-related stalwarts in this fund.
IGM has $2.5 billion in net assets and a 0.05% average spread. Its expense ratio is 0.40%, meaning it is relatively inexpensive to hold in relation to other exchange-traded funds. IGM share price currently trades around $311, giving it a 0.47% distribution yield.
However, as with any opportunity, potential investors should conduct their own due diligence in deciding whether or not this fund fits their own individual investing needs and portfolio goals.
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