iShares Russell 1000 Growth ETF Tops 50% Tech Weight as Sector Flows Surge
IWF•Since the March 30 S&P 500 low, technology has drawn the bulk of sector ETF flows, leaving the iShares Russell 1000 Growth ETF with over 50% tech weighting. Factor ETFs exceed 33% tech allocation—Value at nearly 50%, Momentum at 50%, Quality at 34%—undercutting their appeal as diversifiers.
1. Tech-Led ETF Inflows
Since the S&P 500’s March 30 low, technology-focused funds have captured the majority of sector ETF inflows, driving cumulative flows to other sectors slightly negative. The iShares Russell 1000 Growth ETF now allocates over half its holdings to tech names, far above any other segment.
2. Hidden Tech Exposure in Factor Funds
Style-based ETFs built around value, momentum and quality traits carry substantial tech weight—nearly 50% in the MSCI USA Value Factor ETF, 50% in the Momentum Factor ETF and 34% in the Quality Factor ETF—masking true sector diversification.
3. Low-Tech ETF Alternatives
Investors seeking reduced tech concentration can consider low-volatility and dividend-focused ETFs such as SPLV, HDV, NOBL and RPV or target consumer discretionary exposure via PEJ to balance growth-driven markets.
