For investors looking for momentum, iShares Extended Tech Sector ETF IYW is probably on your radar. The fund just hit a 52-week high and is up 71% from its 52-week low of $72.09 per share.
But is there more profit in store for this ETF? To better understand where this fund is headed, let’s take a quick look at this fund and its short-term outlook.
IYW focus
The iShares Expanded Technology Sector ETF provides exposure to U.S. electronics, computer software and hardware, and information technology companies. It holds major holdings in software and services, semiconductors and semiconductor equipment, high-tech hardware and equipment, and media and entertainment. IYW’s annual fee is 40 bps. (See: All Technology ETFs here).
Why move?
The technology sector has been an area to watch lately, given the euphoria surrounding the Fed’s dovish tone. The central bank has decided to cut interest rates three times by 75bps towards 2024. Since the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The potential for lower interest rates and the ongoing rise of AI provide significant tailwinds.
Will there be more profits in the future?
IYW currently holds a Zacks ETF Rank #1 (Strong Buy) with a moderate risk outlook, suggesting it will likely continue to outperform in the coming months. However, many of the spaces that make up this ETF have strong Zacks Industry Ranks. So there’s definitely some promise for those looking to get a little more into this soaring ETF.
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iShares US Technology ETF (IYW): ETF Research Report
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