MSFT - IOO: Exposure To Technology Stocks Is Beneficial

2024-05-26 20:51:51 ET

Summary

• iShares Global 100 ETF is a global equity fund with a higher exposure to the information technology sector.
• IOO has delivered solid returns since October 2022, outperforming the S&P 500 index.
• Despite a high allocation to U.S. stocks, IOO provides international diversification, as most U.S. stocks in its portfolio have a significant chunk of their revenues outside of America.

ETF Overview

iShares Global 100 ETF ( IOO ) owns a portfolio of about 100 large-cap global equities. The fund basically tracks the investment results of the S&P Global 100 Index. With an expense ratio of 0.41%, this fund is not cheap, as many other global equity funds have expense ratios lower than that. For example, Vanguard Total International Stock Index Fund ETF ( VXUS ) has an expense ratio of only 0.08% . IOO has a higher exposure to the information technology sector than its peers. This means that its fund price will likely benefit from many technological megatrends in the long run. The fund should continue to benefit from an improving global economic outlook. Hence, we think investors should consider owning this fund in the long run....

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