Launched on July 10, 2001, the iShares Expanded Tech-Software Sector ETF (IGV Quick QuoteIGV - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Software segment of the equity market.

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 1, placing it in top 6%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $9.73 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 0.39%, making it one of the cheaper 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 96.9% of the portfolio.

Looking at individual holdings, Oracle Corp (ORCL) accounts for about 9.91% of total assets, followed by Palantir Technologies Inc Class A (PLTR) and Microsoft Corp (MSFT).

The top 10 holdings account for about 60.87% of total assets under management.

Performance and Risk

The ETF has added about 14.5% so far this year and is up about 23.51% in the last one year (as of 10/14/2025). In that past 52-week period, it has traded between $80.15 and $117.79.

The ETF has a beta of 1.15 and standard deviation of 24.21% for the trailing three-year period, making it a high risk choice in the space. With about 119 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares Expanded Tech-Software Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGV is a great 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.

SPDR S&P Software & Services ETF (XSW) tracks S&P Software & Services Select Industry Index and the Invesco AI and Next Gen Software ETF (IGPT) tracks STOXX WORLD AC NEXGEN SOFTWARE DEV ID. SPDR S&P Software & Services ETF has $483.15 million in assets, Invesco AI and Next Gen Software ETF has $582.73 million. XSW has an expense ratio of 0.35%, and IGPT charges 0.58%.

Bottom Line

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