AI stocks stay elevated as FOMO drives momentum, but strong earnings ease bubble worries. Here's why risks remain -- and the ETFs best positioned to benefit.
ETFs like XLG provide a diversified way to benefit from the Mag 7's Q3 earnings surge and the positive momentum expected going forward.
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on May 15, 2000.
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on May 15, 2000.
IYW is well-positioned for strong gains in 2025 as geopolitical risks and tariffs fade, and tech sector earnings momentum accelerates. AI-driven demand, robust software and hardware growth, and a positive earnings outlook are key catalysts for IYW's continued outperformance. IYW's portfolio, led by Microsoft, NVIDIA, Meta, and Alphabet, is outperforming peers thanks to concentrated exposure to high-growth tech leaders.
Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the iShares U.S. Technology ETF (IYW), a passively managed exchange traded fund launched on 05/15/2000.
Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on 05/15/2000.
IYW is a solid ETF that, despite its 0.39% expense ratio, has delivered strong performance over time compared to its peers. Based on the assumption of no fundamental deterioration, rather, a mean reversion, I've estimated what could be considered acceptable bottom values by the market. Considering the current EPS growth outlook for the tech sector, I believe we may have reached a bottom zone.
Designed to provide broad exposure to the Technology - Broad segment of the equity market, the iShares U.S. Technology ETF (IYW) is a passively managed exchange traded fund launched on 05/15/2000.
With the AI race intensifying, concerns about AI monetization by U.S. tech giants are emerging fast.
I have a hold rating on IYW due to its premium valuation and high earnings quality, despite mixed technical signals and potential near-term volatility. Information Technology is the stock market's earnings growth engine, with a forecasted 22.9% growth rate for 2025, significantly above the S&P 500's 14.8%. IYW's top three holdings (AAPL, NVDA, MSFT) represent 45% of the portfolio, posing concentration risk but also potential alpha.
The tech sector's strong earnings growth and favorable macroeconomic trends make iShares U.S. Technology ETF a promising investment for 2025, despite high valuations. IYW's concentrated portfolio in mega-cap stocks like Apple, Microsoft, and NVIDIA positions it to capitalize on tech-driven rallies and market-beating returns. The ETF's diversified holdings in mid and small caps, combined with its low expense ratio and strong liquidity, enhance its growth potential.