TEK: iShares Technology Opportunities Active ETF
What this ETF is trying to do
The iShares Technology Opportunities Active ETF (TEK) is an exchange-traded fund designed to invest in the technology sector. It uses an active strategy, meaning managers make decisions about which companies to include. Based on its top holdings, the fund focuses heavily on major technology and semiconductor companies like NVIDIA Corp and Broadcom Inc.
What the numbers show
The data shows strong growth in share prices recently. The current price of TEK is $41.82. To understand how much the price has changed, we can look at several different timeframes:
• Year-to-Date (YTD) Price Return: The share price has increased by approximately 39.38% since the start of the year.
• One-Year Price Return: Over the last 12 months, the share price grew by approximately 32.99%.
• Estimated Price from Roughly One Year Ago: Based on reconstructed data, the price was approximately $31.44 one year ago.
It is important to note that "price return" only tracks the change in the share price itself. When we look at "total return," which includes the impact of distributions, the one-year total return was approximately 35.14%.
Income and distribution explanation
TEK provides some level of cash distributions, but it is not primarily focused on high income. The distribution yield is approximately 1.14%. This number describes the cash paid out relative to the ETF's price.
The fund has an income rating grade of "C." The distributions are described as irregular or less frequent, with only one payout recorded in the last 12 months. Because the yield is relatively low, this ETF may be more focused on growth than providing regular cash flow.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be a sign of erosion, they are not the same thing.
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. However, the fund's erosion-risk score is 100, which is labeled as "No price erosion detected," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Price Growth: The fund has shown significant share-price increases both year-to-date and over the last year.
• Low Erosion Risk: The data indicates no detected price erosion.
Cons
• Lower Income: With a "C" income grade and irregular payouts, it may not meet the needs of investors looking for steady cash.
• Sector Concentration: The fund is heavily focused on the technology sector.
Beginner takeaway
TEK appears to be a growth-oriented technology ETF. It has seen significant increases in its share price over the past year. While it does pay distributions, the yield is modest and the payments are not frequent. Investors should remember that a high price return is different from total return, and while the price has grown, the fund's primary goal seems to be capturing technology opportunities rather than providing high regular income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 8.64% |
| 2 | SK HYNIX INC | n/a | 7.56% |
| 3 | BROADCOM INC | AVGO | 5.78% |
| 4 | SAMSUNG ELECTRONICS CO LTD | n/a | 5.57% |
| 5 | LAM RESEARCH CORP | LRCX | 5.29% |
| 6 | APPLE INC | AAPL | 4.90% |
| 7 | n/a | TSM | 4.80% |
| 8 | ADVANCED MICRO DEVICES INC | AMD | 4.66% |
| 9 | INTEL CORP | INTC | 3.72% |
| 10 | ALPHABET INC CLASS A | GOOGL | 3.37% |