iShares Expanded Tech Sector ETF (IGM) Covered Calls

The iShares Expanded Tech Sector ETF seeks to track the investment results of an index composed of North American equities in the technology sector and tech-related companies from the communication services and consumer discretionary sectors. This broad-based fund provides exposure to hardware, software, and interactive media leaders, offering a comprehensive view of the technology-driven economy beyond traditional industry classifications.

You can sell covered calls on iShares Expanded Tech Sector ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for IGM (prices last updated Wed 4:16 PM ET):

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The iShares Expanded Tech Sector ETF (IGM) is a versatile growth fund designed to provide broad exposure to the North American technology landscape. Unlike "pure-play" tech ETFs that strictly follow GICS industry classifications, IGM tracks the S&P North American Expanded Technology Sector Index. This "expanded" mandate allows the fund to hold massive "platform" companies that are often excluded from other tech funds, such as Alphabet, Meta, and Netflix. In early 2026, this approach has proven highly effective as the lines between software, media, and consumer services continue to blur in the wake of the AI-driven "everything app" trend.

The portfolio is diversified across nearly 300 holdings, though it remains top-heavy with the world’s most dominant innovators. As of March 2026, the fund’s largest allocations are in Semiconductors (28%), Interactive Media (14%), and Systems Software (13%). Key holdings include NVIDIA, Apple, Microsoft, and Broadcom. By including companies that enable the digital economy—not just those that build the hardware—IGM captures the full value chain of global digitization, from the silicon chips in data centers to the streaming and social platforms that end-users interact with daily.

Competitive Landscape

IGM competes in the crowded Technology Equities category. Its primary rival is the Invesco QQQ Trust, which shares many top holdings but follows the Nasdaq-100 rather than a tech-specific index. For those seeking a "purer" software and hardware tilt, the Vanguard Information Technology ETF (VGT) or the Technology Select Sector SPDR Fund (XLK) are the standard alternatives, though they lack IGM’s exposure to the "Magnificent Seven" communications names.

Other significant peers include the iShares U.S. Technology ETF and the Fidelity MSCI Information Technology Index ETF. IGM is a staple for covered call writers due to its unique blend of stable mega-cap earnings and high-growth volatility. Its options market is active, providing consistent liquidity and attractive premiums for investors looking to generate income while maintaining exposure to the backbone of the U.S. growth economy.

Strategic Outlook and Innovation

The strategic future of IGM in 2026 is defined by its role as a "one-stop shop" for AI integration. While previous cycles focused on the "chip makers," 2026 is the year of the "AI Implementers"—companies like Palantir, Salesforce, and Oracle that are successfully monetizing large language models at the enterprise level. IGM’s inclusion of these diverse software leaders allows it to capture the transition from AI infrastructure to AI-enabled productivity software.

Looking forward, the fund is positioned to benefit from a stabilizing interest rate environment and the ongoing "cloud-native" migration of global finance and industrials. With a moderate expense ratio of 0.39% and a history of robust capital appreciation, IGM remains a preferred choice for institutional and retail investors who want to express a tactical view on the North American tech sector without the narrow constraints of traditional industry labels.

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