iShares Expanded Tech Sector ETF: Key Insights and Performance Overview

The iShares Expanded Tech Sector ETF (IGM) offers broad exposure to the Technology – Broad sector of the equity market. Launched on March 13, 2001, this passively managed exchange traded fund is gaining popularity among both retail and institutional investors.

Investors increasingly favor passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency. These characteristics make such funds appealing for long-term strategies.

Sector ETFs like IGM provide options for low-risk and diversified exposure across various companies in specific sectors. Technology – Broad is one of 16 broad sectors classified by Zacks, currently ranked 8th, placing it in the top 50% of sectors.

Index Details

Sponsored by Blackrock, IGM has amassed over $5.34 billion in assets, positioning it as one of the largest ETFs aiming to replicate the performance of the Technology – Broad sector. The ETF seeks to match the S&P North American Technology Sector Index before fees and expenses.

The S&P North American Expanded Technology Sector Index includes North American equities primarily from the technology sector, as well as select equities from communication services and consumer discretionary sectors.

Costs

Attention to an ETF’s expense ratio is crucial for maximizing investor returns. Generally, lower-cost funds will outperform their higher-cost counterparts, all else being equal.

For IGM, the annual operating expenses stand at 0.41%, consistent with many peer products in this segment.

The ETF currently offers a 12-month trailing dividend yield of 0.25%.

Sector Exposure and Top Holdings

While ETFs promote diversified exposure that reduces individual stock risk, examining the actual holdings is essential. Most ETFs publicly disclose their holdings daily, ensuring transparency.

In the case of IGM, approximately 77.40% of the portfolio is dedicated to the Information Technology sector, with a lesser allocation to Telecom.

Among individual holdings, Apple Inc. (AAPL) represents about 9.09% of total assets, followed by Microsoft Corp. (MSFT) and Meta Platforms Inc Class A (META). The top 10 holdings make up roughly 53.80% of total assets under management.

Performance and Risk

As of April 29, 2025, the ETF has experienced a year-to-date loss of about -9.56%, but it rose approximately 10.57% over the past year. During the last 52 weeks, IGM has traded between $79.80 and $108.46.

The ETF records a beta of 1.26 and a standard deviation of 27.17% for the trailing three-year period, indicating it is a medium-risk investment. With roughly 289 holdings, it effectively diversifies company-specific risk.

Alternatives

IGM holds a Zacks ETF Rank of 1 (Strong Buy), based on anticipated asset class returns, expense ratio, and market momentum. This suggests it is a solid choice for those seeking exposure to Technology ETFs. However, other ETFs in this category are also worth considering.

For instance, the Technology Select Sector SPDR ETF (XLK) tracks the Technology Select Sector Index and manages $64.54 billion in assets. The Vanguard Information Technology ETF (VGT) monitors the MSCI US Investable Market Information Technology 25/50 Index with $75.98 billion in assets. XLK has an expense ratio of 0.08%, while VGT charges 0.09%.

Bottom Line

For further information on this ETF and others, consider screening products that align with your investment goals. Staying updated on the latest developments in the ETF market can also provide valuable insights.