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ISHARES US TECHNOLOGY ETF (IYW)

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This ETF is appropriate for investors seeking exposure to the technology segment of the broad U.S. markets with a focus on large cap equities. The sector benefitted from rising merger and acquisition activities, improving overseas demand, growing global IT spending, slowly-but-steadily improving global fundamentals, solid cash piles on companies’ balance sheets and several emerging trends. Tech behemoths hoard huge cash overseas and are poised to benefit the most from Trump's tax reform which calls for lower tax rate and a one-time repatriation tax. Investors can expect higher dividend distribution or share buyback from this move. However, the strong dollar in the light of further Fed policy tightening and U.S. President Trump’s pledges against outsourcing and ban on immigration might weigh on the earnings of the big tech giants going forward, as these are heavily dependent on outsourcing.


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