What Is the IGM ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
The iShares Expanded Tech Sector ETF (IGM) offers broad exposure to North American technology companies and select communication services firms. Its wider coverage than the traditional IT sector, its Big Tech concentration, and its fee and dividend differences versus VGT and XLK are the key selection criteria.
What Is the iShares Expanded Tech Sector ETF?
The fund tracks an expanded technology sector index that includes U.S. and Canadian technology companies as well as select communication services stocks such as interactive media. Its defining feature is a broader range of exposure than the traditional IT sector classification.
It suits long-term investors who want to diversify across the technology sector while also holding Big Tech and interactive media names.
It is a passive (index-tracking) ETF managed by BlackRock (iShares).
How Does the iShares Expanded Tech Sector ETF Invest?
| Item | Details |
|---|---|
| Tracked index | North American expanded technology sector index |
| Management style | Passive (index-tracking) |
| Rebalancing frequency | Quarterly |
| Dividend frequency | Quarterly |
| Issuer | BlackRock (iShares) |
| Expense ratio | 0.37% |
The fund holds North American technology and select communication services companies included in the expanded technology sector index, weighted by market capitalization. It invests most of its assets in index constituents, and broad diversification reduces reliance on any single stock, although large technology stocks still carry a heavy weight.
- Broader communication services exposure than the traditional IT sector
- Wide diversification across hundreds of holdings
iShares Expanded Tech Sector ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $10.9B, and the expense ratio is 0.37% per year.
Compared with VGT and XLK in the same technology sector, its exposure is broader, but its fee is somewhat higher.
iShares Expanded Tech Sector ETF Performance and Trends
The fund has moved in step with the technology cycle, showing high volatility, and it tends to react sensitively to the interest rate environment and Big Tech earnings seasons. Short-term swings can be larger than those of broad-market ETFs.
When preference for the technology sector rises, money tends to flow into sector ETFs. In risk-off phases, given its heavy growth stock weighting, outflows and rising volatility can occur together.
iShares Expanded Tech Sector ETF Pros and Cons
Its strengths are broad technology sector exposure and diversification, while its weaknesses are Big Tech concentration and a somewhat higher fee.
💪 Key Strengths
⚠️ Points to Watch
iShares Expanded Tech Sector ETF Alternatives and Related Products
VGT, XLK, and FTEC, shown in the table, track the U.S. technology sector and are lower-fee direct comparisons. They have narrower exposure than IGM but a lighter fee burden. You can also consider IYW, which tracks the U.S. technology sector much like IGM, and SOXX for those who want to focus on semiconductors. If you want Nasdaq 100 technology stock weighting, QQQM is another alternative.
| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
| Vanguard Information Technology ETF | $120.20 | -0.1% | $148.8B | 0.09% | 0.39% | +26.2% | |
| State Street Technology Select Sector SPDR ETF | $185.44 | -0.3% | $122.2B | 0.08% | 0.45% | +28.7% | |
| iShares Semiconductor ETF | $500.01 | -0.4% | $42.1B | 0.33% | 0.25% | +70.7% | |
| iShares U.S. Technology ETF | $253.34 | -0.4% | $24.6B | 0.37% | 0.1% | +26.9% | |
| Fidelity MSCI Information Technology Index ETF | $286.87 | -0.1% | $21.3B | 0.08% | 0.39% | +26.5% |
| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AAPL | Apple Inc | 0.17% | $339.50 | -1.0% | $4.95T | 38.9 | 0.33% |
| NVDA | NVIDIA Corp | 0.16% | $216.47 | -0.3% | $5.22T | 27.4 | 0.36% |
| MSFT | Microsoft Corp | 0.16% | $531.87 | -0.3% | $3.95T | 29.6 | 0.74% |
| AVGO | Broadcom Inc | 0.16% | $334.37 | -0.1% | $1.60T | 42.7 | 0.78% |
| MU | Micron Technology Inc | 0.05% | $896.07 | -1.0% | $1.01T | 12.1 | 0.08% |
| GOOGL | Alphabet Inc | 0.05% | $340.27 | -1.1% | $4.14T | 17.1 | 0.24% |
iShares Expanded Tech Sector ETF Investor Checkpoints
Here are the points to review before investing in IGM. It provides broad technology sector exposure, but it is wise to check Big Tech concentration, costs, and currency effects thoroughly in advance. It is also worth remembering that it is a sector bet rather than a core holding.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Compare cost level with comparable technology ETFs | Somewhat high |
| 📊 Big Tech concentration | Review trends in top holding weights | Heavy large-cap weighting |
| 🧩 Sector scope | Whether communication services beyond traditional IT are included | Expanded composition |
| 💱 Exchange rate | Impact on returns converted to won | Not currency hedged |
Concentration in a single technology sector and Big Tech weighting are the main drivers of volatility. During technology stock corrections, losses can be larger than those of broad-market ETFs.
It is a suitable choice for long-term investors seeking broad exposure to the North American technology sector. If cost is the priority, consider VGT or XLK; if you want a wider scope, consider IGM.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.