Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares Expanded Tech Sector ETF (IGM Quick QuoteIGM - Free Report) is a passively managed exchange traded fund launched on March 13, 2001.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options 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 1, placing it in top 6%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $8.89 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.17%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 80.6% of the portfolio, followed by Telecom.

Looking at individual holdings, Apple Inc (AAPL) accounts for about 9.92% of total assets, followed by Broadcom Inc (AVGO) and Nvidia Corp (NVDA).

The top 10 holdings account for about 55.03% of total assets under management.

Performance and Risk

So far this year, IGM has added about 0.53%, and is up about 25.2% in the last one year (as of 01/06/2026). During this past 52-week period, the fund has traded between $79.8 and $135.72.

The ETF has a beta of 1.30 and standard deviation of 22.91% for the trailing three-year period, making it a medium risk choice in the space. With about 283 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 outstanding 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 $92.91 billion in assets, Vanguard Information Technology ETF has $112.79 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

Bottom Line

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