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IGV - ETF AI Analysis

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IGV

iShares Expanded Tech-Software Sector ETF (IGV)

Rating:72Outperform
Price Target:
IGV, the iShares Expanded Tech-Software Sector ETF, earns a solid overall rating driven largely by high-quality leaders like Microsoft, Salesforce, and Adobe, which all show strong financial performance, positive earnings outlooks, and promising growth in cloud and AI. However, several major holdings, including Oracle, Palo Alto Networks, and AppLovin, face risks such as high valuations, leverage, and bearish or mixed technical signals, which temper the fund’s rating. The main risk factor is its heavy concentration in software and AI-focused tech names, making the ETF sensitive to swings in the technology sector and changes in sentiment around high-growth, high-valuation stocks.
Positive Factors
Large, Established Fund
The ETF manages a sizable pool of assets, which can support liquidity and make it easier for investors to trade in and out.
Focused Software Exposure
The fund provides targeted access to leading software and technology companies, giving investors a concentrated way to invest in this growth-oriented area.
High-Quality Brand-Name Holdings
Many of the top positions are well-known, financially solid technology leaders, which can add stability within an otherwise volatile sector.
Negative Factors
Recent Weak Performance
The ETF has shown weak returns over the past month, quarter, and year-to-date, indicating it has been under pressure recently.
Heavy Concentration in a Single Sector
With the vast majority of assets in technology and related industries, the fund is highly sensitive to downturns in the tech sector.
Limited Geographic Diversification
The portfolio is almost entirely invested in U.S. companies, offering little protection if the U.S. market or economy struggles.

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

IGV Summary

IGV is the iShares Expanded Tech-Software Sector ETF, which tracks the S&P North American Expanded Technology Software Index. It focuses mainly on U.S. software companies, from big names like Microsoft and Adobe to newer tech firms in areas such as cloud computing, cybersecurity, and artificial intelligence. Investors might consider IGV if they want growth potential from the software and tech trend, while still spreading their money across many companies instead of picking single stocks. A key risk is that it is heavily concentrated in technology, so its price can rise and fall sharply with the tech sector.
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 a pure play on North American software, and its story right now is one of powerful names hitting a rough patch. Heavyweights like Microsoft, Adobe, and ServiceNow have been losing steam in recent months, weighing on the fund despite solid long-term cloud and AI narratives. Intuit and Palo Alto Networks have been among the brighter spots lately, offering some lift, while Palantir and CrowdStrike keep the AI and cybersecurity themes front and center. With so much weight in a handful of big software platforms, IGV rises or falls with this elite tech crowd.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Microsoft8.80%$953.44M$2.77T-2.17%
79
Outperform
Palantir Technologies8.22%$890.66M$312.09B47.30%
74
Outperform
Oracle8.07%$874.50M$396.49B3.38%
66
Neutral
Salesforce7.07%$766.40M$157.69B-33.03%
80
Outperform
Palo Alto Networks5.96%$646.06M$136.26B-0.76%
73
Outperform
AppLovin4.54%$491.89M$127.88B43.71%
74
Outperform
CrowdStrike Holdings4.45%$482.12M$100.10B7.07%
67
Neutral
Adobe4.22%$457.35M$92.94B-34.31%
80
Outperform
Intuit4.15%$449.85M$100.03B-37.37%
73
Outperform
ServiceNow3.93%$425.49M$93.94B-42.68%
75
Outperform

IGV Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
83.20
Negative
100DMA
93.84
Negative
200DMA
102.69
Negative
Market Momentum
MACD
-1.74
Positive
RSI
33.79
Neutral
STOCH
39.96
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For IGV, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 81.44, equal to the 50-day MA of 83.20, and equal to the 200-day MA of 102.69, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 33.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IGV.

IGV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$11.27B0.39%
72
Outperform
$8.32B0.39%
75
Outperform
$4.03B0.95%
65
Neutral
$922.44M0.39%
73
Outperform
$820.20M0.35%
73
Outperform
$500.88M0.68%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IGV
iShares Expanded Tech-Software Sector ETF
76.64
-10.56
-12.11%
IGM
iShares Expanded Tech Sector ETF
EMLP
First Trust North American Energy Infrastructure Fund
IGE
iShares North American Natural Resources ETF
NANR
SPDR S&P North American Natural Resources ETF
MLPI
NEOS MLP & Energy Infrastructure High Income 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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