Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
Launched on March 13, 2001, the iShares Expanded Tech Sector ETF (IGM) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology – Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options 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 $10.63 billion, making it one of the largest ETFs attempting to match the performance of the Technology – Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.14%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 84.4% of the portfolio, followed by Telecom.
Looking at individual holdings, Microsoft (MSFT) accounts for about 9.9% of total assets, followed by Nvidia Corp (NVDA) and Apple Inc (AAPL).
The top 10 holdings account for about 57.49% of total assets under management.
Performance and Risk
So far this year, IGM has gained about 24.33%, and was up about 31.31% in the last one year (as of 09/15/2026). During this past 52-week period, the fund has traded between $113.31 and $170.99.
The ETF has a beta of 1.40 and standard deviation of 24.06% for the trailing three-year period, making it a medium risk choice in the space. With about 300 holdings, it effectively diversifies company-specific risk.
