iShares Dow Jones US Technology (ETF) (IYW) — This ETF tracks the investment results of the Dow Jones U.S. Technology Index. The index may include companies of any market capitalization, but it is currently heavily weighted toward mega- and large-cap tech stocks.
The top 10 holdings in IYW are Apple Inc. (AAPL), Microsoft Corporation (MSFT), Facebook Inc (FB), Intel Corporation (INTC), Google Inc (GOOGL), International Business Machines Corp. (
IBM), Google Inc (GOOG), Cisco Systems, Inc. (CSCO), Oracle Corporation (ORCL) and Qualcomm, Inc. (QCOM).
IYW has a relatively low expense ratio of 0.45% per year and a current yield of 1.1%. Year to date, shares are up 4%, and they show a 12-month return of 14.2%.
The fund is ranked “overweight” by Capital IQ, which notes that IYW is currently trading at a small 0.01% premium to its net asset value (NAV).
IYW is in a powerful, well-defined bull channel that began in April 2013 at about $70. Initial support is at the 50-day moving average at $108.44, followed by the bull channel support line at about $107, and then the 200-day moving average at $104.68. Resistance to rallies is first at a short-term resistance line at $111.50, and then the channel’s resistance line near $117.
MACD is very close to issuing a fresh buy signal. Recent volume has been flat, but for the past six weeks there has been steady on-balance buying.
Buy IYW for a four-month trade to $118 for a return of 9%. Investors should consider buying this ETF as a long-term position with an eventual target of $120-plus.
