Overview of the IYW ETF
The iShares Dow Jones Technology Sector ETF (IYW) tracks a market-cap-weighted portfolio of US technology companies. It tracks the performance of 147 publicly-listed companies in the technology sector. The market capitalization of the IYW ETF is $2.6 billion with an expense ratio of 0.45% and an average daily volume of shares traded of $27.1 million. The price-to-earnings ratio of the ETF is 17.62x, whereas its price-to-book value ratio and distribution yield stand at 3.69x and 1.2%, respectively.
The top five holdings of the ETF are Apple Inc. (AAPL) at 19.0%, Microsoft (MSFT) at 10.8%, Facebook Inc. Class A Shares (FB) at 6.2%, Google Inc. Class A (GOOGL) at 5.8%, and Google Inc. Class C (GOOG) at 5.6%. They comprise over 45% of the total portfolio. Apple comprises 14.0% of the iShares S&P Global Information Tech. ETF (IXN) as well.
Fund flows in IYW
In the trailing one month, fund inflows for The iShares Dow Jones Technology Sector ETF (IYW) were $26.9 million, whereas in the trailing-12-month period net fund outflows stood at -$2.2 billion. Fund flows in the trailing-one-week and trailing-three-month (or quarterly) periods for the IYW ETF were $16.0 million and -$216.3 million, respectively. Since June 26, 2015, the IYW ETF was trading consistently below its moving averages and since then, net fund outflows in the ETF were -$474.4 million.
The IYW ETF generated investor returns of 11.5% in the trailing-12-month period and 6.7% in the trailing-one-month period. In comparison, it generated 15.5% returns in the trailing-three-year period 2.8% YTD (year-to-date) and -0.79% in the last three months. We can see that as the ETF generates negative returns, fund outflows rise.
On October 23, 2015, the IYW ETF closed the trading day at $109.8. Based on this figure, here’s how the stock fares in terms of its moving averages:
- 5.3% above its 100-day moving average of $104.3
- 8.0% above its 50-day moving average of $101.7
- 6.6% above its 20-day moving average of $103.0
Relative strength index
The IYW ETF’s 14-day RSI (relative strength index) is 72.7[1. Generally, if the RSI is above 70, it indicates the stock is overbought. An RSI figure below 30 suggests that a stock has been oversold.], showing that the ETF could be overbought.