“Technological disruption has only just begun: Digital has yet to permeate many industries; e-commerce represents under 10% of all retail sales; traditional devices are becoming connected via the Internet of Things (IoT); and artificial intelligence (AI) is starting to transform processes,” according to BlackRock.
IYW allocates a combined 21% of its weight to Microsoft Corp. (NASDAQ:MSFT) and Facebook Inc. (NASDAQ:FB) with another 12% devoted to Google parent Alphabet Inc. (NASDAQ:GOOG).
Tech “is home to many high-quality mega-cap stocks that offer healthy and growing dividends. Many more companies outside the tech sector label are leveraging data and analytics to evolve their business models. We believe the winners of the race to embrace new technology will be those companies that are least complacent today,” according to BlackRock.
For more information on the tech sector, visit our technology category.
Tom Lydon’s clients own shares of Apple, Facebook and Microsoft.