IETC: An Actively Managed U.S. Tech Fund With Strong IRR Potential

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Summary

  • iShares U.S. Tech Independence Focused ETF targets U.S.-based tech companies using alternative data, emphasizing long-term growth in a digital economy.
  • IETC's portfolio is AI-driven, with top holdings like Broadcom, Amazon, Microsoft, and Nvidia, presenting both risks and opportunities.
  • Valuation metrics suggest a forward P/E ratio of 27.56x and an IRR potential of 8-11%, but active management adds uncertainty.
  • Despite appealing composition and good IRR potential, lack of transparency in stock selection may make more structured tech funds preferable.

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Introduction

iShares U.S. Tech Independence Focused ETF (BATS:IETC) is an actively managed exchange-traded fund by iShares which allocates its assets to companies deemed to have strong technological capabilities, revenues and production in the United States. iShares explain that the

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