2 Growth ETFs That Just Went on Sale

"Of course, time will tell if it's too soon to go bottom-fishing for software. Either way, I think the AI disruption wave is just getting started. And, with that, investors should be careful which kinds of tech names they look to pick up on the way down. At the same time, investors tend to panic and sell first while asking questions later."

"Often, that leads to overdone sell-offs and opportunities for value investors who know how to get through all the noise. So far this year, there has been no shortage of noise. So, stock pickers with extra cash to invest might have a chance to get a fairly great deal, even though the market averages are still in an "expensive," even overvalued area."

"First up, we have one of the most talked-about ETFs in recent weeks: the iShares Expanded Tech-Software Sector ETF , which has been under serious pressure so far this year, thanks in part to the release of new AI tools from the likes of Anthropic and now OpenAI. Year to date, the software ETF is down around 17%. Though, things have calmed down a bit in recent sessions."

"Whether it's safe enough to get back into the software waters, though, remains the big question. Like it or not, software is on sale, with the ETF now off more than 27% from its all-time highs. As AI challenges the economics of SaaS, questions linger as to whether they'll lose their way as new AI tools drive down the price of dashboards and other commoditized pieces of software."

Tech investors concentrated in SaaS experienced a rocky start to the year as new agentic AI tools raised concerns about the economics and viability of some software offerings. Panic selling amplified market noise and produced outsized declines, creating potential value opportunities for patient stock pickers with cash. Market averages remain relatively expensive despite pockets of weakness. The iShares Expanded Tech-Software Sector ETF has fallen materially year-to-date and sits well below its highs, reflecting fears that AI may commoditize dashboards and other software while uncertainty persists over how SaaS firms will respond.

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