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IUIT (S&P 500 Information Technology): ETF Review — Holdings, TER and Who It's For

6 min readCompound

Key takeaways

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.

Warning: IUIT is a satellite, thematic fund with higher risk. It is not a substitute for a diversified global ETF.

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

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.

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