IGV ETF

In the past, software has generally done better than hardware, but recently, AI-powered hardware has gained a lot of attention. It might be time to consider changing your investments. The IGV ETF's software portfolio appears to be overpriced, with a 38x PE and 2.3x PEG, suggesting only a 1% potential increase, while the semiconductor sector (SOXX ETF) shows a promising 25% upside with better earnings growth and lower prices.

Sung Cho, who is the co-head of public tech investing at Goldman Sachs, appears on 'Closing Bell' to talk about technology investments and company earnings.

Carter Worth, the founder and CEO of Worth Charting, appears on 'Fast Money' to share his thoughts on whether the shift from semiconductors to software will keep going.

Designed to provide broad exposure to the Technology - Software segment of the equity market, the iShares Expanded Tech-Software Sector ETF (IGV) is a passively managed exchange traded fund launched on 07/10/2001.

IGV has outperformed SMH recently, driven by better price action and a slightly lower P/E, leading me to upgrade it from a hold to a buy. Despite a high P/E ratio, IGV's long-term EPS growth and PEG ratio just above 2x make it attractive. The ETF's bullish technical pattern, including a potential cup and handle breakout, suggests strong price trends into year-end and next year.

Software industry underperforming due to slowing growth trend and macroeconomic challenges. The iShares Expanded Tech-Software Sector ETF is expected to underperform because software companies' declining revenue and earnings trend is likely to continue. Consider avoiding IGV and explore other options like IGM, SCHG and QQQM for better returns in the current bull run.

IGV has underperformed the broader technology sector, but has attractive earnings growth rates and valuation. Consensus forecasts show mid to high-teens earnings growth for software stocks in IGV's portfolio between 2024 and 2026. IGV's growth potential is lower than the broader technology sector, but its valuation is not expensive compared to historical averages.

Brad Gerstner, founder of Altimeter Capital, joins CNBC's Halftime Report to discuss the software sector.

Launched on 07/10/2001, the iShares Expanded Tech-Software Sector ETF (IGV) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Software segment of the equity market.