Back to top

Image: Bigstock

Should You Invest in the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT)?

Read MoreHide Full Article

The iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT - Free Report) was launched on July 10, 2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways 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 2, placing it in top 13%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $202.3 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IDGT seeks to match the performance of the S&P DATA CNTR TOWER REIT & COMM EQUIP ID before fees and expenses.

The S&P Data Centre, Tower REIT and Communications Equipment Index comprises of US-listed companies engaged in the owning, operating, developing, or providing of infrastructure for the storage, processing, transmission and access of digital data and services.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.82%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 56.3% of the portfolio. Real Estate and Telecom round out the top three.

Looking at individual holdings, Equinix Reit Inc (EQIX) accounts for about 11.57% of total assets, followed by Digital Realty Trust Reit Inc (DLR) and American Tower Reit Corp (AMT).

The top 10 holdings account for about 69.77% of total assets under management.

Performance and Risk

The ETF return is roughly 36.19% and it's up approximately 63.43% so far this year and in the past one year (as of 04/20/2026), respectively. IDGT has traded between $69.59 and $115.58 during this last 52-week period.

The ETF has a beta of 1.03 and standard deviation of 20.23% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.

Alternatives

iShares U.S. Digital Infrastructure and Real Estate 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, IDGT is an excellent 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 Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $98.50 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $121.05 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in