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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’s rating suggests it is a solid but not risk-free way to invest in leading software and tech names. Strong holdings like Microsoft and Salesforce, which benefit from robust growth in cloud and AI and positive earnings outlooks, help support the fund’s quality. However, several major positions face high valuations, some bearish or mixed technical signals, and risks such as leverage or sector-specific challenges, so the ETF carries notable exposure to volatility within the concentrated tech-software sector.
Positive Factors
Targeted Software Exposure
The fund focuses on leading software and related technology companies, giving investors concentrated access to a key growth area of the tech sector.
Large Asset Base
With a sizable amount of money invested in the fund, it benefits from strong investor interest and typically better trading liquidity.
Reasonable Fee for a Niche Sector Fund
The expense ratio is moderate for a specialized technology ETF, so investors are not paying unusually high ongoing costs for this focused exposure.
Negative Factors
Recent Weak Performance
The ETF has shown negative returns so far this year and over the last few months, indicating recent performance has been weak.
High Concentration in Top Holdings
A small group of large positions like Oracle, Microsoft, and Palantir make up a big share of the portfolio, increasing the impact if any of these stocks struggle.
Very Limited Geographic Diversification
Almost all of the fund’s holdings are in U.S. companies, so investors are heavily exposed to the U.S. tech market and get little benefit from international diversification.

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 on software companies, mainly in the U.S., including big names like Microsoft and Oracle, as well as fast-growing firms in cloud, cybersecurity, and business software. Someone might invest in IGV to tap into the long-term growth of the software and digital technology trend while spreading money across many companies instead of picking single stocks. A key risk is that it is heavily concentrated in tech software, so its price can swing a lot and may fall sharply if tech stocks struggle.
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 very much a North American software story, with a heavy tilt toward cloud, cybersecurity, and AI. Fortinet and Palo Alto Networks have been doing the heavy lifting lately, with rising shares helping power the fund’s recent gains, while CrowdStrike and Cadence Design add steady momentum in the background. On the flip side, big names like Microsoft, Palantir, Salesforce, and ServiceNow have been losing steam, acting as a brake on performance. With so much weight in a handful of large software players, this ETF lives and dies by the mood around high-growth tech.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Palo Alto Networks9.71%$1.35B$265.62B73.18%
73
Outperform
Palantir Technologies8.20%$1.14B$303.96B-14.99%
74
Outperform
Microsoft8.16%$1.13B$2.86T-23.49%
79
Outperform
CrowdStrike Holdings7.00%$972.99M$190.60B57.85%
67
Neutral
Oracle5.89%$818.08M$405.11B-42.63%
66
Neutral
Salesforce4.91%$682.12M$133.76B-36.71%
80
Outperform
AppLovin4.59%$637.38M$170.31B51.29%
74
Outperform
ServiceNow4.11%$571.81M$111.08B-42.16%
75
Outperform
Cadence Design3.93%$545.45M$105.96B19.83%
78
Outperform
Fortinet3.63%$504.94M$115.40B59.00%
71
Outperform

IGV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
92.41
Positive
100DMA
87.53
Positive
200DMA
96.22
Negative
Market Momentum
MACD
0.42
Negative
RSI
54.46
Neutral
STOCH
52.77
Neutral
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 90.87, equal to the 50-day MA of 92.41, and equal to the 200-day MA of 96.22, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 is Neutral, 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
$14.13B0.39%
71
Outperform
$10.56B0.39%
75
Outperform
$4.10B0.95%
66
Neutral
$738.62M0.68%
66
Neutral
$709.75M0.35%
72
Outperform
$708.32M0.39%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IGV
iShares Expanded Tech-Software Sector ETF
92.70
-16.27
-14.93%
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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