Let’s review the iShares Global Tech ETF (IXN), an investment product from BlackRock’s iShares line of ETFs.
The Fund seeks to mimic the investment results of the global technology equities included in the S&P Global 1200 Information Technology Index. Its total net assets stood at $4.7 billion as of August 12, 2024.
Unveiled November 12, 2001, the NYSE Arca exchange-listed fund has a twice-yearly distribution schedule.
Being an exchange-traded fund, only broker-dealers are authorized to acquire and offload individual shares in the secondary market.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for alternatives or a second opinion.
Some facts based on the iShares Global Tech ETF fact sheet might change from the time of writing, so potential investors shouldn’t invest or decide not to invest based off this review alone.
For updated guidance, please contact me.
iShares Global Tech ETF Holdings
The investment option’s top holdings include Microsoft with 18.42%, NVIDIA with 16.85%, and Apple with 8.96%.
Sector-wise, semiconductors & semiconductor equipment has the largest allocation at 43.76%, trailed by software & services at 36.23%, then tech hardware & equip at 19.74%.
In terms of geographical distribution, the US took the largest share with 79.85%.
Meanwhile, 99.73% of the ETF’s investments are injected into stocks.
iShares Global Tech ETF Fees
The charges imposed by the ETF include a 0.41% management fee.
No acquired fund fees and foreign taxes are levied.
However, brokerage commissions and other fees may be assessed.
Ishares Global Tech ETF Performance
On average, the aggregate yearly returns recorded by the fund was 28% for one year, 22.20% for five years, and 11.03% from rollout.
Cumulative total return year-to-date through June 30, 2024 hit 21.90%.
For calendar year total earnings, 52.78% was logged for 2023 and 29.45% for 2021. Positive returns were also hit in 2019 and 2020. Meanwhile, 2022% recorded a loss of 29.79%.
Ishares Global Tech ETF Tax
The Fund intends to distribute profits that may be subject to capital gains or ordinary income taxes. Levies on payouts for investments through tax-deferred accounts like IRAs or 401ks are generally postponed until they are withdrawn.
Pros and cons of iShares Global Tech ETF
Global Tech ETF Advantages
- With a cumulative yield of roughly 33.95% in the last year and steady growth over lengthier time frames, the iShares Global Tech ETF’s gains were remarkable.
- Investors may buy and sell shares of the ETF with ease thanks to it being listed.
- Investing in an ETF rather than individual tech stocks can help lower the threats associated with the volatility of the industry since it distributes the risks and help balance your portfolio.
Global Tech ETF Disadvantages
- The price volatility of the technology sector is well-known, and this is also true of the iShares investment.
- IXN has a big bias toward a small number of major corporations, which can reduce diversification and raise exposure to risks associated with those particular companies.
- Interest rates and other macroeconomic variables are major market circumstances that impact the outcomes of these ETFs.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
