Prediction: Buying the iShares US Technology ETF (IYW) Today Could Set You Up for Life

Key Points

  • Patience and Discipline: With consistent saving and a long-term investment strategy, significant wealth accumulation is possible.**
  • iShares US Technology ETF: This ETF has a strong historical performance, with average annual returns of over 19% across 5, 10, and 15 years, outperforming the S&P 500.**
  • Technology Focus: Ideal for investors bullish on tech stocks, with major holdings in companies like Nvidia, Microsoft, and Apple.**
  • Long-Term Growth Potential: Investing regularly (e.g., $12,000 annually) at growth rates of 8-12% can yield substantial returns over decades.**

Summary

This article explores the potential of the iShares US Technology ETF (NYSEMKT: IYW) as a life-changing investment for patient, disciplined investors. Highlighting the importance of consistent contributions over many years, it showcases the ETF’s impressive historical performance, with average annual returns of over 19% across 5, 10, and 15 years, significantly outpacing the S&P 500. Focused on technology stocks, the fund includes major holdings like Nvidia, Microsoft, and Apple, which make up nearly half its value, appealing to those optimistic about the tech sector’s future. The article provides projections showing how regular investments, even at conservative growth rates of 8-12%, can grow into substantial sums over decades. While acknowledging market volatility and the higher risk of growth stocks during downturns, it suggests that with time, recovery and new highs are likely. The ETF’s reasonable expense ratio of 0.39% and broad exposure to over 140 tech stocks make it an attractive option for long-term portfolios, though investors are cautioned to consider their risk tolerance and market conditions before investing.

The Motley Fool
July 23, 2025
Crypto
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