If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW Quick QuoteIYW - Free Report) , a passively managed exchange traded fund launched on May 15, 2000.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Additionally, sector ETFs offer convenient 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 3, placing it in top 19%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $25 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IYW seeks to match the performance of the Dow Jones U.S. Technology Index before fees and expenses.

The Russell 1000 Technology RIC 22.5/45 Capped Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The Index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.37%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.1%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 91.3% of the portfolio.

Looking at individual holdings, Nvidia (NVDA) accounts for about 17.05% of total assets, followed by Apple (AAPL) and Microsoft (MSFT).

The top 10 holdings account for about 64.55% of total assets under management.

Performance and Risk

So far this year, IYW return is roughly 29.09%, and it's up approximately 23.16% in the last one year (as of 10/29/2026). During this past 52-week period, the fund has traded between $173.53 and $272.59.

The ETF has a beta of 1.35 and standard deviation of 24.07% for the trailing three-year period, making it a medium risk choice in the space. With about 154 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Technology 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, IYW is a great 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 $125.51 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $151.56 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.