You've probably noticed that everyone keeps talking about AI "supercycles" and "infrastructure buildouts" lately. It’s hard to ignore. If you're looking for a way to own that growth without having to pick the winning stock yourself, the iShares Global Tech ETF (IXN) is usually the first name that pops up. But honestly, just knowing it owns "tech" isn't enough anymore. You need to see the actual math—how it swings, how much it drops, and what exactly is under the hood right now in early 2026.
Basically, IXN is the global cousin to those big US tech funds you see everywhere. While funds like VGT stick to American companies, IXN wanders across borders. As of January 2026, it’s managing over $6.8 billion in assets. It’s a heavy hitter, but it’s also a concentrated one. If you’re allergic to volatility, the ixn etf performance statistics annual return maximum drawdown investment focus might give you a bit of a reality check.
The Performance Reality: Annual Returns and the 2025 Victory Lap
Tech had a massive run recently. Looking at the ixn etf performance statistics, the fund closed out 2025 with a total return of about 25.36%. That’s a pretty solid year by any standard. It followed an even more explosive 2023, where the fund surged over 52%.
But let’s be real—tech isn’t always a straight line up.
2022 was a nightmare for global tech, and IXN felt every bit of it, dropping roughly 30.4%. That’s the "tech tax" you pay for those high-growth years. Here is a quick look at the annual returns over the last few years so you can see the rollercoaster for yourself:
- 2025: +25.36% (The AI software boom really kicked in here).
- 2024: +24.3% (Steady gains as chips stayed in high demand).
- 2023: +52.1% (The massive post-inflation recovery).
- 2022: -30.4% (A rough year of rising interest rates).
- 2021: +28.8% (The late-stage pandemic digital surge).
Over the long haul, the numbers look great. If you look at the 10-year annualized return as of December 31, 2025, you're looking at about 21.5% per year. That kind of growth turns a $10,000 investment into something much more substantial over a decade. But you’ve gotta have the stomach for the dips.
Understanding the Maximum Drawdown: How Deep Does the Valley Go?
The term "maximum drawdown" sounds like some technical jargon, but it’s actually the most important stat for your mental health as an investor. It measures the biggest drop from a peak to a trough. It basically answers the question: "If I bought at the absolute worst time, how much money would I have lost before it started coming back?"
Historically, IXN's maximum drawdown has hovered around the 30% to 32% mark during major market corrections. In 2022, for instance, the fund saw a drawdown of about 23.5% between January and September.
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Volatility is just part of the DNA here. The 3-year standard deviation for IXN is around 18.56%. For comparison, a more "stable" broad market fund might be down in the 12-14% range. You're trading stability for the potential of those 50% "up" years.
Honestly, the recovery time is what matters. After the 2022 slump, it took IXN about 18 months to claw back to its previous highs. If you can't wait two years to break even during a crash, this might be too spicy for your portfolio.
The Investment Focus: Where is Your Money Actually Going?
A lot of people think IXN is just a carbon copy of the Nasdaq 100. It’s not. The investment focus of IXN is specifically the S&P Global 1200 Information Technology Capped Index.
The "Global" part is key. While it’s about 81% US-based, it gives you significant exposure to places like Taiwan (roughly 6%), Japan, and the Netherlands.
The Top 10 Heavyweights
The fund is incredibly top-heavy. As of early 2026, the top 10 holdings make up about 62% of the entire fund. It’s basically a bet on a few specific giants.
- NVIDIA (approx. 18-19%): The undisputed king of the AI era.
- Microsoft (approx. 15-16%): The cloud and software backbone.
- Apple (approx. 10%): Still the hardware giant, though it's dropped slightly in weight recently.
- Taiwan Semiconductor (TSMC): The world’s foundry.
- Broadcom: Essential for networking and AI infrastructure.
- Oracle: Making a massive comeback through cloud database growth.
- Palantir Technologies: A newer addition to the top tier as of the 2026 updates.
- ASML Holding: The Dutch company that makes the machines that make the chips.
- Samsung Electronics: Diversified tech from South Korea.
- SAP SE: The German software powerhouse.
You'll notice that companies like Meta (Facebook), Alphabet (Google), and Amazon are missing. Why? Because the index providers categorize them as "Communication Services" or "Consumer Discretionary," not "Information Technology." If you want those names, you’re better off looking at QQQ.
The Cost of Admission: Expense Ratios and Dividends
IXN isn't the cheapest fund on the block. It carries an expense ratio of 0.39%.
Now, compare that to the Vanguard Information Technology ETF (VGT), which costs 0.10%, or the Tech SPDR (XLK) at 0.09%. You are paying a premium for the global reach. Is 0.39% a dealbreaker? Probably not for most, but over 20 years, those fees do nibble away at your compounding.
As for dividends, don't buy IXN for the income. The yield is usually around 0.3% to 1.0%. It pays out semi-annually, but let’s be honest—you’re here for the price appreciation, not the pocket change from dividend checks.
Is IXN Still a Buy in 2026?
We’re currently seeing a massive shift toward AI software and specialized hardware. Analysts at firms like Citi are already talking about a 2026 "supercycle." If that plays out, IXN is positioned perfectly because it captures the entire supply chain—from the machines in the Netherlands (ASML) to the chips in Taiwan (TSMC) and the software in Redmond (Microsoft).
However, the concentration risk is real. When NVIDIA has a bad day, IXN has a bad day.
Actionable Steps for Your Portfolio
If you're looking to move forward with IXN, here's how to handle it:
- Check your overlap: If you already own QQQ or VGT, you might be doubling up on NVIDIA and Microsoft more than you realize. Use a tool like Morningstar’s "Instant X-Ray" to see if your portfolio is becoming a tech-only bubble.
- Rebalance for the "Global" factor: Use IXN specifically if you want that non-US exposure. If you only care about Silicon Valley, stick to the cheaper US-only tech ETFs to save on fees.
- Time your entry: Given the high volatility and current P/E ratios (which are hovering around 37-40x), dollar-cost averaging is your best friend. Don't dump your whole life savings in at an all-time high.
- Set your "Pain Threshold": Look at that maximum drawdown again. If a 30% drop would make you panic-sell at 2 AM, keep your IXN allocation to less than 10-15% of your total portfolio.
IXN remains a powerhouse for a reason. It’s the most straightforward way to own the global brain of the modern economy. Just make sure you're comfortable with the price of the ride.