San Francisco, CA – Investors looking for exposure to U.S. companies focused on tech independence may find interest in the iShares U.S. Tech Independence Focused ETF (IETC). This exchange-traded fund, managed by iShares, offers a unique approach to investing by targeting companies that emphasize resilient value chains within the tech sector.
According to iShares, the fund’s investment strategy is based on BlackRock’s proprietary data. This focus on tech independence is subjective, reflecting the perspective of BlackRock’s fund management team. The fund’s prospectus reveals that IETC invests in U.S. listed common stock using quantitative analysis and a forward-looking classification system that evolves as companies evolve.
The fund boasts top holdings in well-known companies such as Microsoft, Broadcom, and Nvidia, with the top 10 holdings making up a significant portion of the fund’s assets. Compared to other popular ETFs like QQQ, IETC takes a more proprietary and active trading approach, akin to a U.S.-biased Nasdaq-100.
Since its inception in March 2018, IETC has shown promising performance, outperforming the S&P 500 and maintaining a slight edge over QQQ. The fund’s sector exposures are primarily in tech-related industries, with a historical beta slightly elevated compared to the S&P 500.
When it comes to valuation, IETC presents a forward return on equity and a distribution rate that may appeal to investors seeking exposure to strong U.S. companies with a technology bias. With a promising implied equity risk premium and potential upside in valuation, IETC offers a compelling investment opportunity in the tech sector.
Despite potential risks such as macroeconomic changes or shifts in investor sentiment towards tech stocks, IETC remains a safe and long-term hold for those looking to capitalize on the growth of the U.S. tech industry. Overall, the fund’s unique approach to tech independence and focus on resilience in value chains make it a standout choice for investors seeking exposure to the tech sector.
