Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the iShares Expanded Tech Sector ETF (IGM), a passively managed exchange traded fund launched on March 13, 2001.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $8.27 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.

The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.18%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 81.7% of the portfolio, followed by Telecom.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 9.13% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

The top 10 holdings account for about 54.19% of total assets under management.

Performance and Risk

The ETF has lost about 3.14% so far this year and is up about 35.99% in the last one year (as of 03/11/2026). In that past 52-week period, it has traded between $79.8 and $135.72.

The ETF has a beta of 1.30 and standard deviation of 22.66% for the trailing three-year period, making it a medium risk choice in the space. With about 295 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $88.32 billion in assets, Vanguard Information Technology ETF has $110.23 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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iShares Expanded Tech Sector ETF (IGM): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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