Should You Invest in the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT)?

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Should You Invest in the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT)?

Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT), a passively managed exchange traded fund launched on July 10, 2001.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $449.83 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IDGT seeks to match the performance of the S&P DATA CNTR TOWER REIT & COMM EQUIP ID before fees and expenses.

The S&P Data Centre, Tower REIT and Communications Equipment Index comprises of US-listed companies engaged in the owning, operating, developing, or providing of infrastructure for the storage, processing, transmission and access of digital data and services.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.73%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 61.1% of the portfolio. Real Estate and Telecom round out the top three.

Looking at individual holdings, Equinix Reit Inc (EQIX) accounts for about 9.48% of total assets, followed by American Tower Reit Corp (AMT) and Digital Realty Trust Reit Inc (DLR).

The top 10 holdings account for about 63.22% of total assets under management.

Performance and Risk

The ETF has gained about 46.15% so far this year and it's up approximately 55.09% in the last one year (as of 06/22/2026). In that past 52-week period, it has traded between $81.135 and $132.66.

The ETF has a beta of 1.14 and standard deviation of 20.74% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.

Alternatives

iShares U.S. Digital Infrastructure and Real Estate ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IDGT is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $134.52 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $146.22 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research