Hi everyone, I’d love to hear your thoughts on TECH ETF IGM, iShares Expanded Tech Software Sector. Unlike pure tech ETFs like VGT or XLK, IGM also includes communication services exposure, bringing in names like Alphabet and Meta, which adds a broader variety to the portfolio.
Many are asking about this, here is my opinion: I actually prefer the VTI + VXUS mix for my IRA accounts.
My IRA allocation is:
70% VTI
25% VXUS
5% SMH
At the end of the day, it really comes down to your risk tolerance. My IRA is designed to cover the entire global market.
VT is still ALSO heavily weighted toward US stocks (around 60%), whereas VXUS gives you pure international exposure outside the US. That’s why I like pairing VTI with VXUS. it gives you more control and flexibility.
VT is weighted by market cap, it ends up being heavily tilted toward the US. In fact, out of the top 20 holdings in VT, 18 are US based companies and only #7 (TSM) and #20 (ASML) are international.