iShares Expanded Tech-Software Sector ETF

IGV

Market cap $13.8B

The iShares A.I. Innovation and Tech Active ETF (NYSEARCA:BAI) just got a jarring reminder that AI momentum runs in both directions.

Big tech hyperscalers like Amazon, Alphabet, Microsoft, and Meta are positioned for significant free cash flow growth as CapEx investments begin to yield returns post-2028. Semiconductor and memory stocks have led the market, but expectations are now high, making risk-to-reward more attractive in hyperscalers and select software names.

Maintaining adequate diversification is extremely important. However, unless you have simplifying anchors for a portfolio, it can be very easy to lose proper diversification. I share a portfolio strategy - along with specific picks - that can deliver a diversification, low-stress portfolio that generates very attractive income and dividend growth.

The Vanguard Information Technology ETF (VGT) is the way to invest in the sector as a whole. The VanEck Semiconductor ETF (SMH) invests in the narrow sector niche driving the AI build-out.

China has unveiled a new carbon-peaking action plan that targets new energy vehicles (NEVs) accounting for 30% of the country's total vehicle fleet by 2030, marking a significant step in the electrification of the world's largest automobile market. The State Council on Thursday released the "15th Five-Year Plan" Carbon Peaking Action Plan, outlining the country's roadmap to peak carbon emissions before 2030.

The share of private software debt down more than 20% was higher in 2025 than at any time in the past five years.

On CNBC's “Halftime Report Final Trades,” Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, recommended Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).

At the beginning of June , I wrote about two sector exchange traded funds (ETFs) that had become significantly overextended.

The iShares Expanded Tech-Software Sector ETF (NASDAQ:IGV) closed Friday at $88.20, down 16.5% year to date and 18.9% over the past year, despite the broader AI trade still drawing capital.

The numbers behind the artificial intelligence boom have stopped feeling abstract.