What Is IYW? iShares U.S. Technology ETF
Last updated September 2026
Short answer
IYW is iShares U.S. Technology ETF, an ETF that tracks an index of US technology companies at a 0.38% expense ratio. IYW is a pure US technology sector fund, and its concentration is the fact worth leading with: Nvidia at 12.8%, Apple at 11.6% and Microsoft at 8.1% are roughly a third of the portfolio between them. Technology is 84% of the sector weight with communication services making up most of the rest. At 0.38% it costs considerably more than the cheapest sector alternatives, which is the main argument against it.
IYW is issued by iShares and tracks an index of US technology companies. It charges a 0.38% expense ratio, holds approximately $25.4B in assets under management, yields about 0.10%, and launched in 2000.
Three companies, a third of the fund
Nvidia 12.8%, Apple 11.6%, Microsoft 8.1%, Alphabet 5.8% and 4.7% across its two share classes. That top group dominates in a way that makes the remaining holdings close to irrelevant to the fund's behaviour.
This is not a criticism of the construction; it reflects how concentrated US technology has genuinely become. But it does mean that buying IYW to get diversified technology exposure does not achieve that. You are buying a weighted bet on three companies with a long tail attached.
Where it sits against the alternatives
Vanguard's VGT and State Street's XLK cover similar ground more cheaply. The distinguishing feature of IYW's index is that it reaches across some GICS boundaries, so it includes companies a strict sector fund would exclude.
At 0.38% the fee is roughly four times a comparable Vanguard sector fund. Given the overlap in what these funds hold, that difference is difficult to justify unless a specific index construction matters to you.
IYW holdings: top 10
Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.
How do I invest in IYW?
There are three common ways to get IYW exposure. Buy shares (or fractional shares) of IYW directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so IYW sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. IYW trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is IYW a good buy?
Whether IYW is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks an index of US technology companies, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is IYW a buy?
The bottom line on IYW
IYW gives you an index of US technology companies exposure in one ticker at a 0.38% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.
More on IYW
Whether IYW is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is IYW a buy?
IYW yields 0.10% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see IYW dividend: yield and schedule.
New to funds like IYW? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how IYW fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in IYW with AI
Connect the broker you already use and ask Walnut's AI how IYW fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is IYW?
+
IYW is the iShares U.S. Technology ETF. It holds US technology companies, with technology at 84% of the sector weight and communication services making up most of the remainder. It charges 0.38%, holds about $25.4B, and launched in 2000.
How concentrated is IYW?
+
Extremely. Nvidia at 12.8%, Apple at 11.6% and Microsoft at 8.1% are roughly a third of the fund between them. Adding Alphabet's two share classes takes the top group past 40%. The remaining holdings contribute little to how the fund behaves.
IYW vs VGT: which technology fund?
+
They cover similar ground and VGT charges considerably less. IYW's index reaches across some sector boundaries so it can include companies a strict GICS fund excludes. At 0.38% against a much cheaper Vanguard alternative, the fee gap is the main consideration.
Is IYW diversified?
+
Not in any meaningful sense. It is a single-sector fund whose top three holdings are a third of assets. Holding it alongside a broad market fund substantially increases exposure to companies you already own heavily, since those same names dominate the broad index.
Does IYW pay a dividend?
+
About 0.10%, which is negligible. Technology companies reinvest earnings, and the largest holdings here pay little or nothing. Income is not a reason to own this fund.
What would hurt IYW most?
+
Anything specific to large-cap US technology: a rise in interest rates that compresses growth valuations, regulatory action against the largest platforms, or a downturn in semiconductor demand. With three companies at a third of the fund, single-company news matters here far more than in a broad index.
Should I hold IYW if I already own an S&P 500 fund?
+
Understand what it does before you do. An S&P 500 fund is already close to 40% technology, so adding IYW compounds an existing concentration rather than diversifying. That can be a deliberate tilt; it should not be an accident.
Is 0.38% reasonable for a sector fund?
+
It is at the higher end. Sector funds from Vanguard and State Street covering similar exposure charge materially less. You are paying for a particular index construction, and whether that is worth roughly four times the fee is the question to settle.
What is IYW's expense ratio?
+
IYW has an expense ratio of 0.38% per year as of August 2026, charged by iShares and deducted from the fund's value rather than billed to you separately. On a $10,000 position that is roughly $38 a year. Fees compound over time, so on a long-term holding the expense ratio is one of the few return drivers you control. It is worth comparing against other funds that track an index of US technology companies before you choose.
How do I compare IYW to similar ETFs?
+
Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. IYW's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to August 2026; verify current figures against iShares's fund page or your broker before investing.