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Should You Invest in the iShares Expanded Tech-Software Sector ETF (IGV)?
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Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , a passively managed exchange traded fund launched on 07/10/2001.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Software is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $11.69 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Software segment of the equity market. IGV seeks to match the performance of the S&P North American Technology-Software Index before fees and expenses.
The S&P North American Expanded Technology Software Index comprises of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 97.10% of the portfolio.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 8.77% of total assets, followed by Salesforce Inc (CRM - Free Report) and Oracle Corp (ORCL - Free Report) .
The top 10 holdings account for about 59.51% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech-Software Sector ETF return is roughly 5.75% so far, and was up about 31.35% over the last 12 months (as of 06/11/2025). IGV has traded between $77.94 and $110.05 in this past 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.21% for the trailing three-year period, making it a high risk choice in the space. With about 120 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech-Software Sector ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGV is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco AI and Next Gen Software ETF (IGPT - Free Report) tracks STOXX WORLD AC NEXGEN SOFTWARE DEV ID and the SPDR S&P Software & Services ETF (XSW - Free Report) tracks S&P Software & Services Select Industry Index. Invesco AI and Next Gen Software ETF has $443.02 million in assets, SPDR S&P Software & Services ETF has $529.58 million. IGPT has an expense ratio of 0.58% and XSW charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the iShares Expanded Tech-Software Sector ETF (IGV)?
Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , a passively managed exchange traded fund launched on 07/10/2001.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Software is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $11.69 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Software segment of the equity market. IGV seeks to match the performance of the S&P North American Technology-Software Index before fees and expenses.
The S&P North American Expanded Technology Software Index comprises of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 97.10% of the portfolio.
Looking at individual holdings, Microsoft Corp (MSFT - Free Report) accounts for about 8.77% of total assets, followed by Salesforce Inc (CRM - Free Report) and Oracle Corp (ORCL - Free Report) .
The top 10 holdings account for about 59.51% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech-Software Sector ETF return is roughly 5.75% so far, and was up about 31.35% over the last 12 months (as of 06/11/2025). IGV has traded between $77.94 and $110.05 in this past 52-week period.
The ETF has a beta of 1.15 and standard deviation of 26.21% for the trailing three-year period, making it a high risk choice in the space. With about 120 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech-Software Sector ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGV is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Invesco AI and Next Gen Software ETF (IGPT - Free Report) tracks STOXX WORLD AC NEXGEN SOFTWARE DEV ID and the SPDR S&P Software & Services ETF (XSW - Free Report) tracks S&P Software & Services Select Industry Index. Invesco AI and Next Gen Software ETF has $443.02 million in assets, SPDR S&P Software & Services ETF has $529.58 million. IGPT has an expense ratio of 0.58% and XSW charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.