Explore BlackRock’s iShares Expanded Tech Sector ETF for 2026
BlackRock’s (NYSE: BLK) iShares Expanded Tech Sector ETF (IGM) has continually proven its dominance in the technology sector, consistently outperforming the U.S. stock market for over two decades. Since its launch in 2001, IGM has established itself as a premier choice for tech-savvy investors globally.
In the last year alone, IGM delivered an impressive 22.50% growth, while over the past five years, it surged by 119.90%. By comparison, the U.S. benchmark index rose by 14.78% and 79.32% over the same timeframes.
Why IGM Outperforms: A Peek Inside the ETF’s Portfolio
The stellar performance of IGM lies in its well-diversified portfolio, packed with major tech giants:
- Nvidia (NASDAQ: NVDA): Accounting for 9.05% of the ETF, Nvidia’s 1,060% rally, driven by its leadership in artificial intelligence (AI), has been a significant growth factor.
- Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL): Comprising 8.70% and 8.56% of the portfolio respectively, these industry leaders continue to contribute strong, stable growth.
- Broadcom (NASDAQ: AVGO): At 7.41% of the holdings, Broadcom also plays a key role in the ETF’s success.
- Palantir (NASDAQ: PLTR): Increasingly vital as AI growth and S&P 500 inclusion have driven triple-digit returns in 2025.
IGM’s diversified approach ensures investors gain exposure to both historic tech players and innovative companies pushing the boundaries of AI and other tech trends.
Challenges and Opportunities: Is IGM Right for You?
While IGM’s track record is impressive, there are factors potential investors should consider. The fund’s 0.39% expense ratio is relatively high, especially when compared to similar ETFs. Moreover, the ETF’s reliance on the technology sector, particularly AI, presents a systemic risk. Any slowdown in AI development or adoption could significantly impact its performance.
On the other hand, if the optimistic forecasts of tech leaders around Artificial General Intelligence (AGI) materialize, IGM is poised to yield extraordinary returns, cementing its place as a leader in tech investment.
Where to Start
If you’re considering investing in IGM, platforms like eToro offer a user-friendly way to get started. eToro not only supports commission-free trades but also allows users to invest fractional amounts, making it a flexible choice for both new and experienced investors. Other fees apply, so review the terms accordingly before diving in.
Final Thoughts
BlackRock’s iShares Expanded Tech Sector ETF remains a strong contender for investors looking to tap into the sustained growth of the technology sector. With its impressive performance history and strategic holdings in game-changing tech giants, IGM is a formidable choice for 2026. However, as with any investment, weigh the risks and keep an eye on evolving tech trends to make informed decisions.
