"The S&P 500 Software Index is down 30%, and it increasingly looks to be on the verge of bottoming out and recovering. Most of the stocks in this sector weren't sold off due to fundamental reasons, but simply due to fear about AI and the possible impact it will have on software."
"Buying a software ETF in this environment will give you exposure to a wide range of holdings that are poised to bounce back in earnest. It's perhaps the best buy-the-dip opportunity you'll get this year."
"PNQI tracks the Nasdaq CTA Internet Index and invests in companies whose bread and butter is the internet. The top holding is , followed by and . The top 5 stocks are basically your classic Big Tech hyperscaler holdings."
"If we look at the one-year performance, IGV is down 10.6% in the past year, while PNQI is up 9.7% in the past year. Your upside participation is similar, if not superior to that of IGV, while getting you less downside risk from AI."
The S&P 500 Software Index has declined by 30%, yet it appears to be nearing a recovery. Many software stocks are undervalued due to market fears surrounding AI, rather than fundamental issues. Investing in a software ETF can provide exposure to a diverse range of stocks that are likely to rebound. PNQI, which tracks the Nasdaq CTA Internet Index, offers a mix of internet companies, including software stocks, and has shown better performance compared to other software indices over the past year.
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