IGM: Broader And Better

seekingalpha05-04

The stock market has finally dipped after a strong rally, providing a buying opportunity.The iShares Expanded Tech Sector ETF is an interesting fund and a potentially good way to buy the dip.IGM is ...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIGM: Broader And Better\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-04 01:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4689150-igm-broader-and-better><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stock market has finally dipped after a strong rally, providing a buying opportunity.The iShares Expanded Tech Sector ETF is an interesting fund and a potentially good way to buy the dip.IGM is ...</p>\n\n<a href=\"https://seekingalpha.com/article/4689150-igm-broader-and-better\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B1XK9C88.USD","symbol_name":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","start_time":0,"source_url":"https://seekingalpha.com/article/4689150-igm-broader-and-better","article_id":"2432189922","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1617383361/image_1617383361.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432189922","pubTimestamp":1714756501,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"IGM is a technology sector ETF which has been expanded to capture the communication services and the consumer discretionary sector. This allows it to hold stocks such as Meta , Alphabet  and Netflix . Its portfolio contains five of the \"Mag 7\" , whereas a pure technology ETF such as the Technology Select Sector SPDR  holds only three. It is therefore more diversified and holds more leading stocks. IGM is a passively managed fund which seeks to track the S&P North American Expanded Technology Sector Index. Stocks are included according to GICS classification and weighted by float-adjusted market capitalization. IGM holds 283 stocks, with 22% in the communication sector.   IGM Holdings It is interesting and somewhat unusual that the fund holds large positions in both Alphabet Class A and C shares, which makes Alphabet the largest holding when they are combined. In fact, the overall Alphabet exposure is 11.13%, a whole 2% larger than Apple  in second","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","IGM":"iShares Expanded Tech Sector ETF","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","BK4512":"苹果概念","BK4549":"软银资本持仓","LU0082616367.USD":"摩根大通美国科技A（dist）","NFLX":"奈飞","BK4511":"特斯拉概念","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","BK4548":"巴美列捷福持仓","META":"Meta Platforms","BK4514":"搜索引擎","FDN":"First Trust Dow Jones Internet I","GOOG":"谷歌","AMZN":"亚马逊","GOOGL":"谷歌A","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","BK4553":"喜马拉雅资本持仓","BK4534":"瑞士信贷持仓","AAPL":"苹果","BK4533":"AQR资本管理(全球第二大对冲基金)","XLK":"高科技指数ETF-SPDR","BK4555":"新能源车","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","BK4535":"淡马锡持仓","LU0528227936.USD":"富达环球人口趋势基金A-ACC","BK4220":"综合零售","NVDA":"英伟达","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4538":"云计算","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc"},"translate_title":"IGM：更广更好","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1,"XLK":1,"NVDA":1,"NFLX":1,"META":1,"IGM":1,"GOOG":1,"AAPL":1,"FDN":0.9,"GOOGL":0.9},"content_text":"The stock market has finally dipped after a strong rally, providing a buying opportunity.The iShares Expanded Tech Sector ETF is an interesting fund and a potentially good way to buy the dip.IGM is more diversified and has outperformed other technology ETFs over the past year.   amgunStock markets have finally dipped after five months of relentless strength. A pause can be seen as healthy for the uptrend as it will reset positioning and cool off sentiment in some of the hotter sectors. Moreover, it looks driven by more hawkish expectations for rates in 2024, which may be overdone. I am therefore looking to buy outperforming ETFs, and the iShares Expanded Tech Sector ETF (NYSEARCA:IGM) is one of my favorites. Buy the Dip Stock markets - especially some stretched sectors and stocks - really needed a correction. I find it difficult to buy during very strong rallies as my fear is they will reverse sharply, and I am buying the top. Nvidia (NVDA) on March 8 is a great example as the session started off with a perfectly normal (for NVDA) +5% rally and then quickly dropped -10% on no obvious trigger. NVDA eventually corrected -22%, and is now recovering. This has reset some of the frothiness, and other stocks in the \"Mag 7\" have made similar moves. What I particularly like about this recent dip is that earnings have generally been positive in leading stocks. In fact, only Meta (META) has been a disappointment. The April drop in stock markets had a number of catalysts, but none should be too serious in the long term. Escalation in the Middle East conflict has thankfully calmed down. A more hawkish Fed policy is a threat, but this week's FOMC meeting showed there is very little chance of further hikes and optimism inflation will cool again. The shift in hawkish expectations looks overdone. Concerns of high valuations in the stock market remain valid, and may limit progress, but that will not stop me from buying the dip. Why IGM? IGM is a technology sector ETF which has been expanded to capture the communication services and the consumer discretionary sector. This allows it to hold stocks such as Meta (META), Alphabet (GOOG) and Netflix (NFLX). Its portfolio contains five of the \"Mag 7\" (excluding Tesla (TSLA) and Amazon (AMZN)), whereas a pure technology ETF such as the Technology Select Sector SPDR (XLK) holds only three. It is therefore more diversified and holds more leading stocks. IGM is a passively managed fund which seeks to track the S&P North American Expanded Technology Sector Index. Stocks are included according to GICS classification and weighted by float-adjusted market capitalization. IGM holds 283 stocks, with 22% in the communication sector.   IGM Holdings (Seeking Alpha)It is interesting and somewhat unusual that the fund holds large positions in both Alphabet Class A and C shares, which makes Alphabet the largest holding when they are combined. In fact, the overall Alphabet exposure is 11.13%, a whole 2% larger than Apple (AAPL) in second place. This is explained by the document on methodology. At times, companies may be represented in the S&P Custom Sector Indices by multiple share class lines. Maximum weight capping is based on company float-adjusted market capitalization, with the weight of multiple class companies allocated proportionally to each share class line based on its float-adjusted market capitalization as of the rebalancing reference date. If no capping is required, both share classes remain in the index at their natural float-adjusted market capitalization. No single company can have a weighting larger than 24%, so the two classes of shares are left weighted as they are. This produces interesting results and contributed to outperformance since the October low. Data by YCharts Holding a large position in five of the \"Mag 7\" and managing to avoid holding the worst performing TSLA, has given IGM the edge over XLK and QQQ in the past year. However, longer-term, the concentration of XLK does win out as the below three-year view shows. Data by YChartsIn terms of expense ratio, IGM is on the high side for a passively managed fund at 0.41% compared to 0.09% for XLK. It has $4.15B AUM and ample liquidity of $25M Average Daily Dollar Volume. The PE ratio of 36.91 is a major concern. XLK has a PE ratio of 37.9 so this is fairly average for the technology sector. However, I wouldn't think it can sustain above 40 which could limit gains and slow the rally until earnings catch up. Risks A broader market risk is that inflation does not cool as expected and forces the Fed into a \"higher for longer\" stance into the end of 2024. This could weigh on stocks, and particularly long duration sectors such as technology with high PE ratios. As for specific risk to IGM, there is the chance that it could underperform. Avoiding TSLA and holding META has been beneficial over the last year, but this earnings season reversed that trend and it may now be a headwind. Conclusions  IGM offers a slightly different approach to the technology sector and exposure to five of the \"Mag 7.\" Its 11% overall holding in Alphabet makes it the top weighted stock which is fairly unique in a technology ETF. Moreover, it has led to outperformance over the last year while still maintaining diversification. I think the recent broader market dip is a buying opportunity and IGM is a good ETF to provide exposure to top performing stocks and sectors.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432189922"}