Salesforce (CRM) is set for growth, fueled by AI expansion and strategic acquisitions. With $10 billion in cash, the company plans to strengthen its AI capabilities through deals. Its Agentforce automation platform aims to boost efficiency, though adoption may take time. Importantly, the company’s overall revenue is likely to grow, helped by rising demand for CRM’s products. To invest in CRM, investors may consider these two ETFs: iShares Expanded Tech-Software Sector ETF(IGV) and iShares Evolved US Technology ETF (IETC).
Let’s take a deeper look at these two ETFs.
iShares Expanded Tech-Software Sector ETF
The IGV ETF provides exposure to the software sector, benefiting from growth in cloud computing, AI, and enterprise solutions. It tracks the S&P North American Expanded Technology Software Index, offering exposure to leading tech firms.
CRM stock constitutes 7.71% of the ETF’s holdings. Apart from CRM, some of the top stocks in the IGV ETF are Microsoft (MSFT), Oracle (ORCL), and Adobe (ADBE). Overall, the ETF has $11.45 billion in assets under management (AUM). Also, it has an expense ratio of 0.41%. The IGV ETF has returned 21.7% over the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 117 stocks held, 94 have Buys, 22 have a Hold, and one has a Sell rating. At $113.13, the average IGV ETF price target implies a 12.67% upside potential.
iShares Evolved U.S. Technology ETF
The IETC ETF focuses on U.S. tech companies with a strong presence in domestic production and revenue. It aims to capture long-term growth by using alternative data to select firms shaping the digital economy. Importantly, Salesforce stock accounts for 5% of IETC’s total holdings.
Some of the top holdings in IETC ETF include Nvidia (NVDA), Palantir (PLTR), and Amazon (AMZN). Overall, the ETF has $459.05 million in AUM. Also, it has an expense ratio of 0.18%. The IETC ETF has gained 19.38% over the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 101 stocks held, 86 have Buys, 14 have a Hold rating, and one has a Sell. At $94.07, the average IETC ETF price target implies a 14.9% upside potential.
Concluding Thoughts
ETFs provide a diversified way to invest in Salesforce, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a low-cost, liquid, and transparent way to participate in the market. Investors seeking ETF recommendations might consider IGV and IETC, as these ETFs offer significant exposure to CRM stock.