IYW ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The iShares U.S. Technology ETF (IYW), which tracks the Dow Jones U.S. Technology Index, offers concentrated exposure across the U.S. technology sector, including software, semiconductors, and hardware. Key selection criteria are its exposure range, expense ratio, and how its dividends and outlook compare with similar ETFs such as VGT and XLK.
SubscribeWhat Is the iShares U.S. Technology ETF?
This is a sector ETF that tracks the Dow Jones U.S. Technology Index and provides exposure to the U.S. technology sector as a whole. It holds U.S.-listed companies in software, semiconductors, and technology hardware in proportion to their market capitalization, and its concentration in top holdings is relatively high.
It suits investors who want to increase their allocation to U.S. tech stocks at the sector level, as well as investors who want to add a tactical technology sector tilt on top of a core portfolio.
It is a passively managed (index-tracking) ETF run by BlackRock (iShares).
How Does the iShares U.S. Technology ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Dow Jones U.S. Technology Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Quarterly dividends |
| Issuer | BlackRock (iShares) |
| Total Expense Ratio | 0.37% |
The fund holds the constituents of the Dow Jones U.S. Technology Index in proportion to their market capitalization, tracking the performance of the U.S. technology sector as a whole. It offers broad exposure to software, semiconductors, and technology hardware, and rebalancing is reflected quarterly in line with the index methodology.
- A single, broadly diversified exposure to the U.S. technology sector
- A market-cap-weighted structure with a high allocation to top Big Tech names
iShares U.S. Technology ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $23.6B, and the total expense ratio is 0.37% per year.
Compared with similar ETFs covering the same technology sector, there are differences in the tracked index and fee level, so it is best to compare exposure range and cost together.
iShares U.S. Technology ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund rises and falls with the U.S. technology sector and tends to react sensitively to Big Tech earnings seasons and the interest rate environment. Because of its sector concentration, it is more volatile than the broader market, and its recent trend also follows the tech stock cycle.
Fund flows continue to follow investor sentiment toward the technology sector: inflows stand out when growth stocks are in favor, while outflow pressure tends to build when investors turn risk-averse.
iShares U.S. Technology ETF Pros and Cons
Its strength is broad exposure to the U.S. technology sector, while its weakness is the volatility that comes from sector concentration and top-holding dominance.
💪 Key Strengths
⚠️ Points to Watch
iShares U.S. Technology ETF Alternatives and Related Products
VGT and FTEC, shown in the table, are larger, lower-cost alternatives that track information technology indexes, while XLK is a flagship product focused on the technology sector within the S&P 500. SOXX and IGV in the table are more narrowly focused on semiconductors and software, respectively. For leveraged exposure to tech stocks, you can also consider TECL (3x), and for exposure to semiconductors through a different index, SMH. Even within the same technology sector, the tracked index, exposure range, and fees differ, so comparison is necessary.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $115.55 | +0.2% | $143.1B | 0.09% | 0.41% | +19.4% |
 XLK | State Street Technology Select Sector SPDR ETF | $176.50 | -0.0% | $117.1B | 0.08% | 0.47% | +20.1% |
 SOXX | iShares Semiconductor ETF | $450.41 | -3.1% | $43.9B | 0.33% | 0.28% | +52.0% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $275.75 | +0.2% | $20.5B | 0.08% | 0.4% | +19.4% |
 IGV | iShares Expanded Tech-Software Sector ETF | $103.56 | +0.9% | $12.9B | 0.38% | 0.02% | -7.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| NVDA | NVIDIA Corp | 0.30% | $200.13 | -3.2% | $4.82T | 25.3 | 0.39% |
| AAPL | Apple Inc | 0.27% | $349.51 | +5.3% | $5.10T | 38.9 | 0.33% |
| MSFT | Microsoft Corp | 0.11% | $555.80 | +6.7% | $4.13T | 29.0 | 0.7% |
| GOOGL | Alphabet Inc | 0.19% | $288.93 | +3.2% | $3.52T | 15.1 | 0.3% |
| GOOG | Alphabet Inc | 0.06% | $287.30 | +3.3% | $3.52T | 15.0 | 0.3% |
| AVGO | Broadcom Inc | 0.05% | $325.48 | -2.0% | $1.55T | 41.5 | 0.8% |
iShares U.S. Technology ETF Investor Checkpoints
Here are the points to review before investing in IYW. Since it is a product concentrated in a single technology sector, it is wise to check in advance the cumulative costs, sector concentration, volatility from top-holding dominance, and currency exposure.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Annual fee applies |
| 📊 Sector Concentration | Check the weight of single-sector tech exposure | High concentration |
| 📈 Top Holdings | Trend in top Big Tech concentration | Large-cap weight is heavy |
| 💱 Exchange Rate | Impact on returns converted to Korean won | Unhedged |
Technology sector concentration and top-holding dominance are the main drivers of short-term volatility. In periods of rising interest rates or weak growth stocks, drawdowns can be larger than the broader market, so position sizing needs to be managed.
This is a sector ETF suited to investors who want concentrated exposure to the U.S. technology sector. If cost is the priority, consider lower-fee alternatives such as VGT and FTEC, and if you need narrower thematic exposure, it is recommended to also review SOXX and IGV.
SubscribeDisclaimer: 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.
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