Microsoft is the top company by asset weightings accounting for roughly 8.72%, while Merck & Co. Inc. (MRK) with 5.79% exposure and AAPL with 5.34% occupy the next two spots.
In terms of sectors, the fund is pretty much diversified, with Technology comprising 28.1% of assets, followed by 18.99% Consumer Defensive and 14.05% Energy.
The ETF has gained 4.25% in the past one month and 23% in the year-to-date time frame.
The iShares S&P North American Technology-Software Index Fund (IGV)
This ETF provides exposure to companies specializing in software, holding 60 securities in total. Large caps dominate the holding pattern with more than 50% of asset invested while a very small proportion of the asset base go towards mid caps and small caps
It manages an asset base of $896.4 million and has a concentrated play in the top ten with total investment of more than 55%.The product has the largest exposure to Microsoft with 8.54% of the total fund assets invested in the stock. Adobe and Oracle are the other two top holdings having exposure of a little under 8%.
The fund charges a fee of 48 basis points annually. The fund delivered a return of 21.6% over a period of one year (see 3 Apple Proof ETFs).
Better-than-expected results from Microsoft have raised hopes about the company’s future prospects. The company in this era of smartphones and tablets is leveraging its resources well with its next generation surface range products.
Investors might therefore consider the above mentioned ETFs to cash in on the rising trend at Microsoft.
This article is brought to you courtesy of Eric Dutram.