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IGV - ETF AI Analysis

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IGV

iShares Expanded Tech-Software Sector ETF (IGV)

Rating:71Outperform
Price Target:
IGV, the iShares Expanded Tech-Software Sector ETF, has a solid overall rating, mainly because it holds high-quality software leaders like Microsoft and Salesforce, which show strong financial performance, positive earnings outlooks, and promising growth in cloud and AI. At the same time, some holdings such as Oracle and CrowdStrike face issues like bearish technical trends, high leverage, or profitability challenges, which weigh on the fund’s rating. The main risk is that the ETF is heavily concentrated in the tech software sector, so it is more exposed to valuation swings and sector-specific downturns than a more diversified fund.
Positive Factors
Strong Cybersecurity Leaders
Key holdings in cybersecurity, such as Palo Alto Networks and Fortinet, have shown strong gains, helping support the fund’s overall performance.
Focused Software Exposure
The ETF concentrates on software and related technology companies, giving investors targeted access to a key growth area in the tech sector.
Large Asset Base
The fund manages a substantial amount of assets, which can help with trading liquidity and reduce the impact of large buy or sell orders.
Negative Factors
Weak Recent Performance
The ETF’s year-to-date return has been negative, reflecting recent weakness in many of its software holdings.
Heavy Concentration in Top Holdings
A small group of companies, including Palantir, Microsoft, and CrowdStrike, make up a large share of the portfolio, increasing the impact if any of them perform poorly.
High U.S. and Tech Exposure
With almost all assets in U.S. technology stocks, the fund is highly sensitive to downturns in the U.S. tech sector and offers little geographic or sector diversification.

IGV vs. SPDR S&P 500 ETF (SPY)

IGV Summary

IGV is the iShares Expanded Tech-Software Sector ETF, which follows the S&P North American Expanded Technology Software Index. It focuses on software companies, from big names to newer players, that build programs for businesses, security, and cloud services. Well-known holdings include Microsoft and Oracle. Someone might invest in IGV to tap into the long-term growth of technology and get diversified exposure to many software firms in a single fund. However, because it is heavily concentrated in tech and software, its price can swing a lot and may fall sharply if the tech sector struggles.
How much will it cost me?The iShares Expanded Tech-Software Sector ETF (IGV) has an expense ratio of 0.39%, meaning you’ll pay $3.90 per year for every $1,000 invested. This is slightly higher than average because it is a sector-specific ETF, focusing on actively managed exposure to the software industry rather than broader, passively managed indexes.
What would affect this ETF?The IGV ETF, focused on the software sector, could benefit from growing demand for cloud computing, cybersecurity, and artificial intelligence, as these technologies drive innovation and adoption across industries. However, rising interest rates or economic slowdowns could negatively impact tech companies, as they often rely on growth funding and are sensitive to consumer and business spending. Additionally, regulatory changes in North America, where the ETF is geographically concentrated, could pose risks to its top holdings like Microsoft and Salesforce.

IGV Top 10 Holdings

IGV is essentially a North American software story, with cybersecurity names like Palo Alto Networks, CrowdStrike, and Fortinet doing the heavy lifting as their stocks keep rising on strong demand for digital defense. Microsoft and Palantir are more mixed, with recent choppiness in their share prices, while Salesforce and Adobe feel like former high-flyers catching their breath. Oracle and AppLovin have been lagging, acting as small anchors on performance. Overall, the fund is heavily concentrated in big software and cloud platforms, with little exposure beyond tech.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Palo Alto Networks10.27%$1.52B$296.55B128.96%
73
Outperform
Palantir Technologies10.14%$1.50B$413.36B-4.08%
74
Outperform
Microsoft9.60%$1.42B$3.71T-3.01%
79
Outperform
CrowdStrike Holdings7.54%$1.12B$218.34B111.20%
67
Neutral
Oracle5.66%$837.69M$423.49B-40.22%
66
Neutral
Salesforce5.31%$786.48M$157.85B-15.12%
80
Outperform
ServiceNow4.36%$645.04M$129.13B-25.59%
75
Outperform
Adobe3.66%$541.48M$105.42B-18.19%
80
Outperform
Fortinet3.39%$501.89M$117.13B120.21%
71
Outperform
Intuit3.07%$453.91M$88.97B-52.64%
73
Outperform

IGV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
93.83
Positive
100DMA
89.84
Positive
200DMA
94.30
Positive
Market Momentum
MACD
3.03
Negative
RSI
68.15
Neutral
STOCH
92.66
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IGV, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 95.20, equal to the 50-day MA of 93.83, and equal to the 200-day MA of 94.30, indicating a bullish trend. The MACD of 3.03 indicates Negative momentum. The RSI at 68.15 is Neutral, neither overbought nor oversold. The STOCH value of 92.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IGV.

IGV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$14.73B0.38%
71
Outperform
$10.81B0.37%
75
Outperform
$4.11B0.95%
65
Neutral
$854.96M0.68%
68
Neutral
$774.14M0.35%
72
Outperform
$754.58M0.39%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IGV
iShares Expanded Tech-Software Sector ETF
103.92
-5.62
-5.13%
IGM
iShares Expanded Tech Sector ETF
EMLP
First Trust North American Energy Infrastructure Fund
MLPI
NEOS MLP & Energy Infrastructure High Income ETF
NANR
SPDR S&P North American Natural Resources ETF
IGE
iShares North American Natural Resources ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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