Welcome to Insider Trades Daily, glad you're here! Every day, more than 500,000 investors use this newsletter to track insider buying and selling across major public companies. It’s a simple way to see what the people closest to the business are doing with their own money. Before we start sending your daily updates, there’s just one quick thing left to do. Please confirm your subscription using the link below. Click Here to Confirm Your Subscription to Insider Trades Daily It takes a few seconds and helps make sure your newsletter shows up where it belongs, your inbox, not a spam folder. Once you’re confirmed, we’ll take it from there and deliver clear, no-nonsense insider trading insights straight to you. Start Receiving Insider Information The InsiderTrades.com Team P.S. If there's anything we can do to improve your experience, please let us know by replying to this email.
Special Report
3 ETFs to Play the Enterprise Software SlumpBy Nathan Reiff. Posted: 5/4/2026. 
Key Points
- Major players in the enterprise software space like IBM and ServiceNow have experienced stock price declines this year amid concerns about AI and other issues.
- ETFs focused on the space, including IGV, WCLD, and, more broadly, ARKK, could be found at a relative discount while these companies are struggling.
- Still, software firms will need to adapt in order to reverse these trends, and the threat of AI looms large.
- Special Report: Have $500? Invest in Elon’s AI Masterplan
Enterprise software—large-scale tools designed for organizations and business clients—is facing a slump as providers and customers navigate the shifting AI landscape, the inertia built into existing systems, and uncertainty about the future of software-as-a-service (SaaS) companies. That weakness is reflected in the declines in the share prices of major providers like ServiceNow (NYSE: NOW) and IBM Corp. (NYSE: IBM) this year. These stocks have fallen by about 40% and 20% year-to-date (YTD), respectively. One way for investors to play this trend is to buy while prices are relatively low. If the enterprise software industry can successfully adapt to the shifting landscape—that is, if companies can either integrate AI into their existing products or shift their focus to sidestep the threat of AI entirely—they may be able to rebound. The exchange-traded funds (ETFs) below may help investors who are optimistic about the space gain easy exposure. IGV's Approach Combines Legacy Software Leaders With Smaller Growth Plays
The iShares Expanded Tech-Software Sector ETF (BATS: IGV) tracks a benchmark index of U.S. software companies across market capitalizations. Across more than 110 holdings, IGV offers exposure to major software names like Oracle Corp. (NYSE: ORCL), which tend to carry relatively heavy weights, as well as much smaller firms. It is the smaller names on the list that may appeal at a time when some of the biggest players are seeing sharp share-price declines. A bet on a fund like IGV assumes that the ETF will eventually favor the software firms that are best positioned to navigate the shift toward AI. By balancing major industry names with up-and-coming players, this ETF may provide easy access to multiple approaches to this challenge. At the same time, investors will want to keep an eye on IGV's valuation. With a price-to-earnings (P/E) ratio of 36.4, the fund is not exactly a bargain, despite falling 18% year-to-date (YTD) and carrying an expense ratio of 0.39%. Some investors may prefer to wait a bit longer to see whether it continues to drift toward a bottom before buying in at a more attractive value. WCLD's Cloud Software Strategy Avoids Overweighting the Biggest NamesFor a different take on the software industry, the WisdomTree Cloud Computing Fund (NASDAQ: WCLD) follows an index of U.S.-listed firms that provide cloud-based software and services. The ETF's 65 holdings are weighted more evenly than those of IGV—one of the largest holdings, DigitalOcean Holdings Inc. (NYSE: DOCN), makes up only about 2.1% of the portfolio, for example. This means that even the more prominent names in WCLD's basket do not account for a disproportionate share of the portfolio. That can help mitigate damage if major players see steep declines. On the other hand, it may limit upside if only a small number of software companies rally. WCLD has a somewhat higher expense ratio than IGV at 0.45% in annual fees, along with a smaller asset base and lower average trading volume. However, liquidity should still not be a major concern for investors, as these levels remain fairly robust, with managed assets of about $224 million and a one-month average trading volume of 1.1 million. ARKK Could Be a Bargain While Down Slightly Year-to-DateThe ARK Innovation ETF (BATS: ARKK) is the most expensive fund on this list, with a 0.75% expense ratio that may scare off some investors. However, it also has the best performance of the three—although it is still negative YTD, it has declined by less than 1% over that period. This fund is actively managed by a team led by the well-known tech investor Cathie Wood. Specifically, the fund seeks companies that could benefit from the AI revolution. It is not uniquely focused on software companies, but rather has a broader technology mandate that includes primarily North American companies while not being limited by geography. With the narrowest portfolio of the three funds on this list, ARKK has fewer than 50 positions, and its largest holding can account for close to 10% of assets. The fund's long-term performance history is strong, and it has a reputation for outperforming the market and more broadly structured thematic ETFs in many cases. While it's down so far in 2026, it may present investors with a buying opportunity. |
Post a Comment
Post a Comment