Three ETFs Hold Up to 8.40% of Their Portfolios in IBM Shares

IBM shares accounted for as much as 8.40% of three exchange-traded funds’ portfolios as CEO Arvind Krishna said large companies are scrutinizing returns from artificial intelligence spending.

At IBM’s earnings call Wednesday, Oct. 21, Krishna said larger enterprises are examining whether their AI investments are paying off. He warned about spending that grows without a clear return, while saying AI can improve productivity when companies redesign workflows to use it. His comments addressed corporate AI spending broadly; he did not say IBM’s own AI investments were failing to pay off.

The First Trust NASDAQ Technology Dividend Index Fund (TDIV) held IBM at 8.40% of its portfolio as of Tuesday, Oct. 20. The WisdomTree Quantum Computing Fund (WQTM) listed IBM at 6.41%, and the State Street SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG) listed it at 5.63%, both as of Wednesday, Oct. 21. TDIV had 87 holdings excluding cash in its Oct. 20 snapshot.

The funds have different strategies. TDIV focuses on technology dividend stocks, WQTM targets the quantum-computing ecosystem, and SPDG holds dividend-paying companies across sectors. Their IBM weights show exposure to IBM shares, not each fund’s overall exposure to AI.

IBM reported third-quarter revenue of $17.103 billion, up 5% year over year. Net income was $2.190 billion, and diluted earnings per share were $2.30. Software revenue rose 8% to $7.804 billion, Consulting revenue was flat at $5.335 billion, and Infrastructure revenue increased 4% to $3.707 billion.

The company maintained its 2026 expectation for constant-currency revenue growth of 4% to 5%. IBM forecasts a year-over-year increase of more than $1 billion in full-year free cash flow.