A Technology ETF for Cyclical Sector Rotation
May 6th, 2013 at 3:30pm by Tom Lydon
ETF Spotlight on the iShares Dow Jones U.S. Technology Sector Index Fund (NYSEArca: IYW), part of an ongoing series.
Assets: $1.87 billion.
Objective: The iShares Dow Jones U.S. Technology Sector Index Fund tries to reflect the performance of the Dow Jones U.S. Technology Index, which tracks the U.S. tech sector, including areas like software, computer services, technology hardware and equipment.
Holdings: Apple (NasdaqGS: AAPL) 16.9%, Microsoft (NasdaqGS: MSFT) 9.9%, Google (NasdaqGS: GOOG) 8.8%, International Business Machines (NYSE: IBM) 8.6% and Oracle (NasdaqGS: ORCL) 5.1%. [Lagging Tech Sector ETFs Need Apple Turnaround]
What You Should Know:
- BlackRock’s iShares sponsors the fund.
- IYW has a 0.46% expense ratio.
- The fund has 136 holdings and the top ten make up 67.2% of the overall portfolio.
- The ETF has a 1.04% 12-month yield.
- Sub-sector allocations include Technology Hardware & Equipment 51.8%, Software & Computer services 48.0%.
- IYW is up 1.8% over the past month, up 2.5% over the last three months and up 4.9% year-to-date.
- The fund is 3.8% above its 200-day exponential moving average.
- “IYW has a very high-quality portfolio–wide-moat and narrow-moat firms account for about 49% and 39% of the portfolio, respectively. In other words, Morningstar’s equity analysts believe that about 88% of the assets that comprise this portfolio are invested in companies with sustainable competitive advantages,” according to Morningstar analyst Robert Goldsborough.
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