Should You Consider Putting Your Money in the iShares Expanded Tech Sector ETF (IGM)?

Explore the iShares Expanded Tech Sector ETF (IGM)

If you're seeking comprehensive access to the broad technology sector within the equity market, the iShares Expanded Tech Sector ETF (IGM) may be worth your attention. This passively managed exchange traded fund, which debuted on March 13, 2001, is designed to track the performance of a wide array of technology-related companies.

Passively managed ETFs like IGM are favored by both institutional and individual investors for their cost-effectiveness, transparency, adaptability, and tax advantages, making them a solid choice for those with a long-term investment horizon.

Sector-focused ETFs provide an efficient way to achieve diversified exposure to a specific industry, reducing risk while covering a broad range of companies. The Technology - Broad sector, one of 16 major Zacks sectors, currently holds the third spot, placing it among the top 19% in the Zacks Industry classification.

Fund Overview and Index Composition

Managed by Blackrock, IGM has accumulated over $8.27 billion in assets, ranking it among the largest ETFs targeting the broad technology segment. The fund seeks to mirror the performance of the S&P North American Technology Sector Index, before accounting for fees and expenses.

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

Fee Structure

Expense ratios play a crucial role in determining an ETF's returns. Over time, funds with lower expenses often outperform their pricier counterparts, assuming all other factors are equal.

IGM stands out with an annual operating expense of 0.39%, positioning it as a cost-effective option within its category.

The fund also offers a 12-month trailing dividend yield of 0.18%.

Portfolio Allocation and Major Holdings

Before investing, it's essential to review an ETF's holdings, even though these funds offer broad diversification and reduce the risk associated with individual stocks. Most ETFs, including IGM, provide daily transparency regarding their portfolios.

Approximately 81.7% of IGM's assets are allocated to the Information Technology sector, with the next largest allocation in Telecommunications. Among its top holdings, Nvidia Corp (NVDA) represents about 9.13% of the fund, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

The fund's ten largest positions make up roughly 54.19% of its total assets.

Performance and Risk Profile

Year-to-date, IGM has declined by about 3.14%, but over the past year (as of 03/11/2026), it has gained approximately 35.99%. During the last 52 weeks, its share price has ranged from $79.8 to $135.72.

With a beta of 1.30 and a three-year standard deviation of 22.66%, IGM is considered a medium-risk investment. Its portfolio of around 295 holdings helps spread out company-specific risk.

Other ETF Options

IGM currently holds a Zacks ETF Rank of 1 (Strong Buy), reflecting its favorable outlook based on factors such as expected returns, fees, and momentum. Investors interested in technology ETFs may also want to explore additional options in this space.

• State Street Technology Select Sector SPDR ETF (XLK): Tracks the Technology Select Sector Index, with $88.32 billion in assets and an expense ratio of 0.08%.
• Vanguard Information Technology ETF (VGT): Follows the MSCI US Investable Market Information Technology 25/50 Index, managing $110.23 billion and charging a 0.09% expense ratio.

Conclusion

For more information on IGM and other ETFs, consider using screening tools to find products that align with your investment goals and stay informed with the latest ETF market news. Visit the Zacks ETF Center for additional resources.

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