iShares North American Tech-Software ETF (IGV)

It could hit $100 with only a bit of positive sentiment. The earnings of these software stocks are going in the opposite direction of the stock.

Got obliterated in the last year. He's been accumulating. Lots of value in the whole software sector.

In the past month, software has been oversold and won't wait for Nvidia's result to rebound. IGV is bottoming.

There's some disruption definitely coming, and right now the market's debating what that means. This ETF is a basket of all the software players, from MSFT down to smaller ones. On the chart, you can see the dramatic move down in the last few months -- we're back to the peak of Covid and the April 2025 time of maximum tariff fear.

If you didn't get in and out at the right time, you'd have made no money. With every investment, timing is important. He likes this ETF a lot more down here than he did back at the highs. If AI is massively disruptive (and only the next 2-3 years will tell), he realizes that we could get back to the lows around $50. But if you're not in software, it's looking really interesting here.

Expects the sector to recover this year, and likes current prices.

Watch the negative correlation trade.  Over 6 months, IGV is up 15% and semis were flat, but the past month IGV is -5% and semis +1%. Nvidia and CRM report tonight--what will be the impact?

ETF recommendation? There are a number of them out there. The ones he uses add diversification and are used primarily as a short term trading vehicle for him. He mostly uses SOXX, IGV and FDN.

A great name. He likes their migration to a subscription basis. It has good pricing power and he personally uses their products all the time. They are the defacto standard. A little rich at today's value though. He would also consider the ETF IGV-A to help diversify some of the risk in the space.

July 31-Nov.8 is seasonality. It's outperformed the market by 4.2% in this period. It's trending higher and consistently. Software stocks are the new defensive stocks because they're adopting the subscription model, like Microsoft.