#Xit internet software#

The hypothetical growth of $10,000 invested in the ETF for the last five years paints a clearer picture of how rapidly its performance has improved in the last two years, with the exception of a significant dip between mid-February and March 2020, and a decline since August 2021. It is betting entirely on the Canadian tech sector but has managed to provide prolific returns that are close to the benchmark index as well.

The fundвЂ™s focus on one sector may make it a medium- to high-risk investment to consider, especially considering the fact that it does not hold equity securities or fixed-income assets trading on other stock exchanges. IShares XIT has been banking on the growth of the Canadian tech sector to provide investors with phenomenal returns in recent years. The advent of high-growth tech companies like Shopify, Constellations Software, and Lightspeed POS, changed the landscape of the Canadian tech sector. It is no surprise that the iShares XIT performance has been phenomenal over the last few years. The remaining allocation is towards Cash and/or Derivatives. It has less than 1% weighting towards each of the Communications Equipment, Electronics Manufacturing Services, and Electronic Equipment and Instruments.

#Xit internet software#

It invests in IT Consulting and Other similar services and then focuses on the Systems Software segment. The second-biggest allocation is towards the Internet Services and Infrastructure segment. IShares XIT invests almost half of its entire funds in application software. I will provide a segment weighting in my iShares XIT review because the ETF invests in different sectors within the Canadian tech sector. Typically, this is the section in my reviews where I discuss the sector weighting of an ETF, depending on how much it invests in across Financials, Industrials, and other sectors of the economy. Shopify used to account for a more significant allocation of the ETFвЂ™s funds under management, but it has recently been rebalanced by management to diversify holdings within the top ten equity securities. While iShares XIT keeps adjusting its holdings to reflect the S&P/TSX Capped Information Technology Index, it has had an acute focus on Canadian equities like Shopify, Constellation Software, and CGI Inc. The remaining 0.07% of the fundвЂ™s holdings are in cash and/or derivatives. Its top ten holdings comprise 98% of its entire investment portfolio. The BlackRock iShares S&P/TSX Capped Information Technology Index ETF primarily invests in various segments of the Canadian tech sector. вћЎпёЏ Buy ETFs With Wealthsimple Trade вЂ“ $25 Signup Bonus The index focuses mainly on equity securities, with no fixed-income assets. However, iShares XIT consists primarily of securities in the underlying S&P/TSX Capped Information Technology Index. Typically, ETFs provide investors with exposure to a mix of both fixed-income and equity securities. In this section of my iShares XIT review, I will discuss the fundвЂ™s asset allocation. iShares XIT Asset AllocationДЄsset allocation of XIT: 100% Equity, 0% Fixed Income The total value of the ETF is $617 million as of November 30, 2021, highlighting a remarkable growth for investor capital in the last few years. Some of its holdings are in cash and its derivatives. The underlying index comprises Canadian equity securities that trade on the Toronto Stock Exchange.ДЄll things considered, you can consider iShares XIT a bet on the Canadian IT sector across its various segments, including Application Software, Internet Services, and Infrastructure, IT Consulting, Systems Software, Communications Equipment, and more. However, the BlackRock iShares S&P/TSX Capped Information Technology Index focuses primarily on the Information Technology sector. Most ETFs diversify across various sectors, geographical locations, and between fixed-income and equity securities to align with respective investing goals. The ETF is actively managed by BlackRock Asset Management, providing investors with the peace of mind that a reputable institution is managing the portfolio of stocks.

The underlying ETF focuses primarily on various Canadian companies in the Information Technology sector. The ETF seeks to provide investors with long-term capital growth by replicating the performance of the S&P/TSX Capped Information Technology Index as closely as possible, net of expenses.

It is one of the older funds offered by BlackRock that provides investors with exposure to a basket of Canadian Information Technology stocks. 7 Conclusion What is BlackRock iShares XIT ETF?Д«lackRock iShares XIT ETF is a low-cost index fund offered by BlackRock since March 19, 2001.