Technology, the largest sector weight in the S&P 500, has lagged some other sectors this year, notably utilities and energy. However, the Technology Select Sector SPDR (NYSEArca: XLK) is up 11.5% year-to-date, or about 340 basis points more than the S&P 500.
Investors looking for something a bit more exotic than the standard U.S.-focused technology ETF have options, including an overlooked but solid one in the form of the iShares Global Tech ETF (NYSEArca: IXN).
Putting a finger on IXN’s anonymous status relative to other tech ETFs is a difficult task. After all, the ETF is not small nor is it new. Nearly 13 years old, IXN is home to $723.7 million in assets under management.
More important than those aesthetic superlatives is IXN’s status as a credible ETF for gaining exposure to Apple (NasdaqGS: AAPL). That is a good trait to ETF when Apple is up 24.4% in the past 90 days and flirting with all-time highs. IXN allocates 13.3% of its weight to Apple. Not only is that more than 530 basis points than IXN’s weight to Microsoft (NasdaqGS: MSFT), that is one of the largest weights to the iPad maker of any ETF. [Investors Return to Apple ETFs]
There are reasons to consider IXN beyond its Apple exposure and its 10.5% year-to-date gain. IXN, like several other more well-known tech ETFs, has benefited this year not only from its Apple exposure, but its exposure to suddenly resurgent old line tech stocks. [Your Grandparents Would Like This Tech ETF]
IXN’s combined weight to Microsoft, Intel (NasdaqGS: INTC) and Cisco (NasdaqGS: CSCO) is 15%. Those happen to be three of just six members of the Dow Jones Industrial Average that are up at least 10% this year.