I am rating IGV (iShares Expanded Tech-Software Sector ETF) a 'buy' to balance risk from individual stock picking in software and capture potential sector rerating amid ongoing volatility. Palantir's exceptionally strong Q1 FY26 and ServiceNow's ambitious FY30 targets demonstrate that “AI Eating SaaS” may have run its course. Plus, earnings reports from Atlassian, Twilio and Zeta also came in much better than expected, leading to a considerable rerating higher in these names.
The stock market is in a strong bull market, with the S&P 500 and Nasdaq 100 indices rising to their record highs. This article explores some of the best ETFs to buy if you have $100,000 to invest today.
Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the iShares Expanded Tech-Software Sector ETF (IGV), a passively managed exchange traded fund launched on July 10, 2001.
| XMEX Exchange | US Country |
The company is an investment entity that concentrates its investments primarily in the component securities of its designated index, which focuses on the U.S. software industry along with select companies from the interactive home entertainment and interactive media and services sub-industries both in the U.S. and Canada. The fund is committed to investing at least 80% of its assets in the securities that comprise its underlying index or in investments that closely mimic the economic characteristics of these component securities. This strategy aims to measure and capture the performance of leading companies within the specified sectors. However, it is notable that the fund operates with a non-diversified status, meaning it may invest more heavily in fewer securities, thus potentially subjecting investors to greater risks and volatility compared to diversified funds.
The fund invests a minimum of 80% of its assets in the securities that form its underlying index. This approach is designed to closely replicate the economic characteristics and performance of these securities, providing investors with exposure to leading companies in the software, interactive home entertainment, and interactive media and services industries across the U.S. and Canada.
In addition to direct investments in component securities, the fund also allocates assets to investments that exhibit substantially identical economic characteristics to those of the underlying index's securities. This strategy ensures that the fund's portfolio mirrors the performance and characteristics of its specified sectors, aiming for consistency and alignment with its investment objectives.
The underlying index targets the performance of stocks from the software industry as well as selected companies within the interactive home entertainment and interactive media and services sub-industries. This specialized focus allows the fund to capture growth and innovation within key sectors of the technology and digital entertainment markets in North America.
As a non-diversified fund, this investment vehicle might allocate its assets in larger proportions to a smaller number of securities. While this can lead to higher returns if those securities perform well, it also means the fund is more exposed to the risk of significant losses from the underperformance of any single investment. This structure demands investors to consider their risk tolerance and investment objectives closely.