iShares U.S. Technology ETF (IYW) is an exchange-traded fund that seeks to track the performance of an index composed of U.S.-listed technology companies. The ETF is managed by BlackRock through its iShares platform and trades under the ticker IYW on NYSE Arca.

Classified as a U.S.-focused equity ETF with a technology sector emphasis, IYW aims to reflect, before fees and expenses, the performance of the securities included in its reference index. 

IYW tracks the Dow Jones U.S. Technology Index, which consists of large- and mid-cap U.S. technology companies.

Constituents are weighted based on free-float-adjusted market capitalization. The index undergoes periodic reviews, including additions, removals, and rebalancing, which are reflected in the ETF’s holdings.

Diversification and sector exposure

IYW provides concentrated exposure to the U.S. technology sector across segments such as:

• Software and computing services.
• Hardware and technology equipment.
• Semiconductors.
• Information technology services.
• Internet and digital communication.

The portfolio reflects the structure of the U.S. technology equity market.

Structure and costs

IYW shares trade on the secondary market on NYSE Arca throughout regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. IYW distributes dividends derived from its underlying holdings in accordance with its distribution policy.

History and evolution of the ETF

iShares U.S. Technology ETF was launched in 2000 during the early expansion of sector-focused ETFs in the U.S. market. Since inception, it has become a widely used vehicle for gaining exposure to the U.S. technology sector.

In recent years, the ETF has reflected concentration trends among large technology companies, shifts in monetary policy cycles, and volatility observed in the sector following the period of pandemic-related stimulus.

Additional Information

iShares U.S. Technology ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $24.42 billion.

Over the past 12 months, iShares U.S. Technology ETF recorded a return of 27.46%, with its price trading between $173.53 and $272.59 during the same period.

The ETF is traded under the ticker IYW.