Summary
- The iShares Expanded Tech-Software Sector ETF offers focused software exposure, but the Invesco QQQ Trust ETF remains the superior tech play.
- QQQ’s broader diversification, mega-cap inclusion, and balanced tech exposure deliver better risk-adjusted returns and defensiveness across market cycles than IGV.
- IGV’s higher concentration and valuation make it riskier, while QQQ captures AI growth and mega cap defensiveness without sacrificing upside.
- QQQ is a clear Buy for tech exposure; IGV is best used as a satellite holding for those seeking additional software sector diversification.
Calvin Chan Wai Meng/iStock via Getty Images
The iShares Expanded Tech-Software Sector ETF ([IGV](http…
Summary
- The iShares Expanded Tech-Software Sector ETF offers focused software exposure, but the Invesco QQQ Trust ETF remains the superior tech play.
- QQQ’s broader diversification, mega-cap inclusion, and balanced tech exposure deliver better risk-adjusted returns and defensiveness across market cycles than IGV.
- IGV’s higher concentration and valuation make it riskier, while QQQ captures AI growth and mega cap defensiveness without sacrificing upside.
- QQQ is a clear Buy for tech exposure; IGV is best used as a satellite holding for those seeking additional software sector diversification.
Calvin Chan Wai Meng/iStock via Getty Images
The iShares Expanded Tech-Software Sector ETF (IGV) is a focused bet on North American software companies. The high scalability and margin prospects of the software sector theoretically imply higher upside potential in
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