Tech-Software ETF Gains 5–8% As AI Investment Forecast Hits 30%
Escalating Middle East conflict propelled broad tech ETFs, with iShares Expanded Tech-Software ETF rising 5–8% last week alongside peers such as WCLD and HACK. Structural AI tailwinds, including a projected 30% increase in hyperscaler investment for 2026, and a favorable low-rate backdrop supported the fund’s sector holdings.
1. Geopolitical Tensions Boost Tech ETF Demand
Escalating strikes propelled oil prices to their highest levels since 2024, driving market volatility that steered investors toward technology-focused ETFs as defensive growth plays.
2. IGV Weekly Performance in Context
iShares Expanded Tech-Software ETF advanced between 5% and 8% last week, ranking among top-performing sector funds alongside cloud and cybersecurity peers such as WisdomTree Cloud Computing Fund and Amplify Cybersecurity ETF.
3. Structural AI Tailwinds
Hyperscaler capital expenditures are forecast to rise roughly 30% in 2026, reinforcing demand for software and AI-related holdings that comprise a significant portion of the ETF’s portfolio.
4. Low-Rate Environment Supports Tech Sector
U.S. GDP growth slowed to 1.4% in Q4 2025, reducing Federal Reserve rate-hike pressure and maintaining a favorable low-rate backdrop that benefits high-growth technology stocks within the fund.