Software ETF sees record retail buying as AI concerns ease
Investing.com -- The iShares Expanded Tech-Software Sector ETF saw retail investors pour in a record $46 million on Monday.
The single-day buying surpassed the previous record by roughly 40%. The ETF's prior record was set in early February when retail traders purchased a net $32.8 million, according to Reuters report citing data from Vanda Research.
The iShares Expanded Tech-Software Sector ETF jumped 5.9% on Monday, reaching its highest level in about five months.
Software stocks have largely recovered losses from earlier this year when concerns about AI-driven disruptions affected the sector. Vanda Research noted that the AI and semiconductor trade is showing early signs of broadening from a flows perspective, with software emerging as one of the initial beneficiaries.
ServiceNow Inc (NYSE: NOW), International Business Machines (NYSE: IBM), Adobe Systems Incorporated (NASDAQ: ADBE), Atlassian Corp Plc (NASDAQ: TEAM), Salesforce Inc (NYSE: CRM) and Workday Inc (NASDAQ: WDAY) rallied between 7.5% and 9.6% in Monday's session.
Investor concerns around AI disruption built after Anthropic in February launched new tools that automated tasks across domains, including marketing and data analytics, raising questions about potential pressure on traditional software businesses.