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IUIT (S&P 500 Information Technology): ETF Review — Holdings, TER and Who It's For
Key takeaways
- IUIT tracks the S&P 500 Information Technology Index — the pure IT sector of the largest US companies.
- Extreme concentration: the top 5 stocks typically make up 50–60% of the fund, dominated by Apple, Microsoft and Nvidia.
- The approximate TER is around 0.15% per year; always verify the exact figure on justETF.
- A thematic fund with higher risk — sector concentration creates significant dependence on the performance of a single industry.
- Suitable exclusively as a satellite for investors with clear conviction about the long-term growth of the IT sector.
IUIT is a thematic ETF for investors who believe American technology companies will continue to drive the global economy — and who are willing to accept the corresponding concentration risk. The iShares fund tracks the S&P 500 Information Technology Index, i.e. the IT segment of the largest US equity index. It holds Apple, Microsoft, Nvidia, Broadcom, Salesforce and other technology names.
What IUIT exactly tracks
The S&P 500 Information Technology Index contains only companies from the S&P 500 classified in the IT sector under the GICS (Global Industry Classification Standard). In practice these are dozens of companies — hardware, software, semiconductors, IT services. Note: Meta, Alphabet (Google) and Amazon are not in the IT sector under GICS — they belong to Communication Services and Consumer Discretionary. IUIT is therefore not a synonym for "big tech."
Concentration — the main risk of the fund
This is the key warning: the top 3–5 stocks account for more than half the fund. If Apple or Microsoft see a significant drop, IUIT will feel it strongly. Sector concentration is intentional — this is a thematic, not a diversified, instrument. Compare with how to measure risk.
Costs and fund structure
The approximate TER is around 0.15% per year — relatively low even for a sector fund. IUIT is an Irish accumulating UCITS ETF. It trades in USD and euros on various exchanges. Irish domicile provides advantageous taxation of US dividends — 15% withholding instead of the standard 30%.
For whom and in what role
- A satellite position (5–15% of the portfolio) for investors with IT-sector conviction.
- As a complement to a global ETF — not as a replacement.
- For investors with a long horizon (10+ years) and high volatility tolerance.
- Not suitable for conservative investors or those with a short horizon.
Risks of thematic investing
The IT sector has seen dramatic declines in history — the dot-com bubble in 2000–2002 meant an 80% drop. Sector ETFs can fall far more than the global index in crises. Before adding IUIT, read how to build a portfolio and visit the ETF overview for context.
FAQ
Why are Apple and Microsoft not weighted in the S&P 500 IT Index the same as in the whole S&P 500?
They are, but the weight differs. Together with Nvidia they make up roughly 20% of the full S&P 500; in IUIT — where only IT companies appear — their weight within the fund grows to 50–60%. This is the result of concentrating on a single sector.
Is IUIT suitable for regular investing?
Technically yes, but the higher volatility must be understood. DCA (regular investing) reduces volatility, but sector concentration remains. We recommend it rather as a complement to a core global ETF.
Does IUIT contain Nvidia and semiconductors?
Yes, Nvidia and other semiconductor makers (Broadcom, Qualcomm, Texas Instruments) are part of the IT sector under GICS. They are therefore represented in IUIT, typically with a significant weight.