Core Insights - The article compares two leading technology ETFs: State Street Technology Select Sector SPDR ETF (XLK) and iShares US Technology ETF (IYW), highlighting their differences in cost, yield, and sector focus [1][2]. Cost & Size Comparison - XLK has a lower expense ratio of 0.08% compared to IYW's 0.38%, making it more affordable for long-term investors [3][4]. - As of December 12, 2025, the one-year return for IYW is 20.8% while XLK is at 20.7% [3]. - XLK offers a higher dividend yield of 0.5% compared to IYW's 0.1% [10]. - Assets Under Management (AUM) for XLK is $95.6 billion, while IYW has $21.4 billion, indicating XLK's greater liquidity [3][11]. Performance & Risk Comparison - Over the past five years, IYW experienced a maximum drawdown of 39.43%, while XLK had a lower drawdown of 33.55% [5]. - The growth of a $1,000 investment over five years would yield $2,413 for IYW and $2,303 for XLK [5]. Holdings & Sector Focus - XLK focuses on the S&P 500's technology sector with 72 stocks, heavily weighted towards industry giants like Nvidia (13.71%), Apple (12.82%), and Microsoft (11.16%) [6]. - IYW holds 142 stocks, providing broader exposure including communication services, with top holdings of Nvidia (15.46%), Apple (15.42%), and Microsoft (13.44%) [7]. Investor Considerations - Both ETFs have similar performance and holdings, but XLK's lower costs and higher yield may appeal more to cost-conscious investors [8][12].

Core Insights - BlackRock is increasing its exposure to US equities and artificial intelligence, reflecting confidence in the US stock market's performance and potential growth in AI spending [1][3][4] Group 1: Investment Strategy - BlackRock's model portfolios are now 2% overweight in equities, shifting focus from international developed stocks to US stocks due to strong earnings performance [2][3] - The firm has seen significant inflows into its ETFs, with $3.4 billion entering the iShares S&P 100 ETF, marking its largest one-day influx [6] Group 2: Market Performance - The S&P 500 has reached all-time highs this year, driven by enthusiasm for AI and expectations of a Federal Reserve interest-rate-cutting cycle [3][4] - US corporate earnings have grown by 11% since Q3 2024, significantly outperforming developed markets, which have seen less than 2% growth [3][4] Group 3: AI Focus - BlackRock is shifting from a broad-based US tech ETF to an AI-focused fund, indicating a strategic pivot towards AI investments [7] - Nearly $1.4 billion flowed into the iShares AI Innovation and Tech Active ETF, while the iShares US Technology ETF experienced a loss of $2.7 billion [7] Group 4: Model Portfolio Growth - BlackRock's model portfolio assets have increased to approximately $185 billion, up from $150 billion earlier this year, highlighting the growing popularity of these investment strategies [5]