IGV ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
IGV, the iShares Expanded Tech-Software Sector ETF, concentrates on the North American software sector and gives direct exposure to the cloud, artificial intelligence, and cybersecurity growth themes. Its fees, dividend, and sector concentration compared with broad technology ETFs are the key selection criteria and the main points for judging its outlook.
SubscribeWhat Is the iShares Expanded Tech-Software Sector ETF?
This is a sector-focused ETF that tracks an index of North American software companies and some interactive media and home entertainment companies. It holds application and systems software companies at its core, giving direct exposure to the software theme.
It suits investors who want to concentrate on structural growth themes such as software, cloud, and AI, and who are willing to tolerate sector volatility.
It is a passively managed (index-tracking) ETF run by iShares.
How Does the iShares Expanded Tech-Software Sector ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | S&P North American Expanded Technology Software Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Semiannual |
| Issuer | iShares |
| Total Expense Ratio | 0.38% |
The fund holds North American software stocks on a market-capitalization-weighted basis, tracking the performance of the software sector as a whole. It invests most of its assets in the constituents of the underlying index, and changes to the index are reflected through quarterly rebalancing.
- Exposure focused on the software industry rather than on technology stocks broadly
- A portfolio with a high weighting in growth themes such as cloud, AI, and cybersecurity
iShares Expanded Tech-Software Sector ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $14.2B, and the total expense ratio is 0.38% per year.
Its portfolio is more narrowly concentrated in software than broad technology sector ETFs, which means both thematic concentration and volatility tend to be higher.
iShares Expanded Tech-Software Sector ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund has shown large swings, driven by growth expectations for the software sector as well as interest rates and earnings seasons. It tends to move more widely than the broader market, so its short-term performance is sensitive to thematic sentiment.
Money tends to flow into the sector ETF when growth expectations tied to cloud and artificial intelligence come to the fore, while in risk-off phases capital can leave quickly given the high-growth nature of the sector. Fund flows are fairly volatile depending on the market environment.
iShares Expanded Tech-Software Sector ETF Strengths and Weaknesses
Its strength is concentrated exposure to the software theme, and its weakness is the volatility that comes with sector and stock concentration.
💪 Key Strengths
⚠️ Points to Watch
iShares Expanded Tech-Software Sector ETF Alternative ETFs and Related Products
The VGT, XLK, FTEC, and IYW shown in the table are broader technology sector ETFs that are not limited to software and also include semiconductors and hardware, and they generally carry lower fees. SOXX offers exposure to a different subsector, specializing in semiconductors. To take a wider approach to the software theme or extend into internet and cloud, you can also consider ETFs such as WCLD, which sits close to IGV.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $120.97 | +1.5% | $147.5B | 0.09% | 0.39% | +25.0% |
 XLK | State Street Technology Select Sector SPDR ETF | $186.32 | +1.7% | $121.0B | 0.08% | 0.45% | +26.9% |
 SOXX | iShares Semiconductor ETF | $491.83 | +2.9% | $45.1B | 0.33% | 0.25% | +66.2% |
 IYW | iShares U.S. Technology ETF | $252.88 | +1.2% | $24.3B | 0.37% | 0.1% | +24.5% |
 FTEC | Fidelity MSCI Information Technology Index ETF | $288.61 | +1.5% | $21.1B | 0.08% | 0.38% | +25.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| PANW | Palo Alto Networks Inc | 0.16% | $390.46 | +2.6% | $319.4B | 761.9 | - |
| PLTR | Palantir Technologies Inc | 0.17% | $198.84 | +1.1% | $477.8B | 169.4 | - |
| MSFT | Microsoft Corp | 0.16% | $532.60 | +1.5% | $3.96T | 29.7 | 0.74% |
| ORCL | Oracle Corp | 0.15% | $126.06 | -0.1% | $381.2B | 19.8 | 1.56% |
| CRM | Salesforce Inc | 0.07% | $247.61 | -0.4% | $203.8B | 22.6 | 0.45% |
| CRWD | Crowdstrike Holdings Inc | 0.07% | $261.83 | +1.6% | $268.1B | 7334.2 | - |
iShares Expanded Tech-Software Sector ETF Investor Checkpoints
Here are the points to review before investing in IGV. Because it is an ETF concentrated in the software sector, it is advisable to check in advance the long-term holding cost, single-industry concentration, volatility from top-holding concentration, and the currency exposure faced by Korean won-based investors.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Annual fee applies |
| 📊 Sector Concentration | Be aware of single-industry exposure to software | Concentrated exposure |
| 📈 Top Holdings Weighting | Check the trend in top-holding concentration | Relatively heavy weightings |
| 💱 Exchange Rate | Impact on returns converted to won | Not currency hedged |
Single-sector concentration and top-holding concentration are the main drivers of volatility. If the software cycle slows or sentiment toward growth stocks weakens, the fund could see a larger pullback than the broader market.
It is a direct choice for investors who want to concentrate on the software theme. If you want broader technology exposure, ETFs such as VGT and XLK are an option, while IGV fits if you want to keep a software focus.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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