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IETC: Actively Managed Tech ETF Flying Under The Radar

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Why You Should Consider the iShares U.S. Tech Independence Focused ETF (IETC)

The purpose of this article is to highlight the potential of the iShares U.S. Tech Independence Focused ETF (IETC). Unlike its peers, IETC offers a unique approach to sector classification through a proprietary system. This innovative method allows for a broader range of companies in the fund’s portfolio, leading to positive performance results. Since its launch in 2018, IETC has been among the top-performing Tech ETFs, even during market downturns. With an annual fee of just 0.18%, it is worth considering adding IETC to your watchlist. In this article, we will delve into the details of why this ETF stands out in the tech sector.

An Overview of iShares U.S. Tech Independence Focused ETF (IETC)

IETC is an actively managed ETF with a focus on outperforming other Tech ETFs. Unlike most of its peers, IETC uses a proprietary system that allows companies to be classified into multiple sectors. This approach gives investors access to a more diverse group of companies. According to FactSet Analytics, IETC’s weighting is generally based on market capitalization, with an emphasis on companies with a high Technology Independence Score. This score is calculated using factors such as technological capabilities, revenues, and production in the US and select global markets.

Despite being an actively managed fund, IETC has a relatively low portfolio turnover since its inception in 2018.

IETC offers better diversification than popular plain vanilla funds like the Technology Select Sector ETF (XLK). Along with other multi-sector funds such as the SPDR NYSE Technology ETF (XNTK), iShares U.S. Tech Breakthrough Multisector ETF (TECB), and Invesco NASDAQ Internet ETF (PNQI), IETC provides investors with exposure to a broader range of sectors.

A Look at IETC’s Performance

When comparing IETC’s performance to other tech ETFs such as XLK, PNQI, and XNTK, we can see that IETC has consistently delivered strong returns. Its performance history shows an impressive average annual gain of 18.68%, surpassing its peers. Although it had a relatively challenging year in 2022, it remains a top performer in the sector.

IETC’s strong profitability is another key advantage. With a Profit Score of 9.83/10, it ranks among the highest in the sector. This suggests that even in times of market decline, IETC is likely to recover quickly.

Fundamental Analysis of IETC

An analysis of selected fundamental metrics reveals that IETC stands out in terms of diversification, profitability, and growth potential. Compared to XLK, IETC offers better growth prospects and a more diverse portfolio. Its profit score of 9.53/10 is impressive and indicates strong financial performance. Furthermore, IETC’s estimated revenue, EBITDA, and EPS growth rates outperform XLK, making it an attractive option for growth-oriented investors.

Investment Recommendation

IETC offers several attractive features, including a diverse portfolio spanning multiple sectors, a proven track record, and a low expense ratio. It also provides investors with more growth potential compared to XLK. Its limited exposure to high-cap tech stocks like Apple makes it a compelling choice for investors looking to diversify their tech holdings. While it may not outperform every year, IETC has demonstrated resilience and is worth considering as part of a well-balanced tech portfolio. Keep an eye on IETC and monitor market conditions for potential opportunities. Thank you for reading.

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