Software ETF IGV Roars Back 40%, VYM vs HDV, Walmart+ Edge
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
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Gotrade News - The iShares Expanded Tech-Software Sector ETF (IGV) has rallied 40% since April 10, closing near $104.73 on June 3. According to The Motley Fool, the comeback follows a brutal selloff driven by fears that AI coding tools would erode enterprise software demand.
Recent earnings reports have flipped the narrative, with software majors posting accelerating revenue growth. The bounce coincides with two other notable themes, a dividend ETF face-off between VYM and HDV, and Walmart+ subscribers spending four times more than nonmembers.
Key Takeaways
IGV has gained 40% since April 10 as enterprise software earnings refute AI disruption fears.
VYM offers broader exposure at lower cost, while HDV delivers a higher yield with sector concentration.
Walmart+ members spend 4x more than nonmembers, though shares slid 11.5% after the Q1 2027 print.
IGV holds 62% of assets in its top 10 names, led by Oracle (ORCL) at 10.4% and Microsoft at 7.7%. Palo Alto Networks, Palantir, CrowdStrike, and Salesforce round out the heavyweight cluster that powered the recovery.
According to The Motley Fool, ServiceNow, Atlassian, and Salesforce each delivered accelerating revenue growth in their latest quarters. The data undercut the thesis that AI assistants like Claude Code would let businesses replace enterprise software subscriptions.
The fund has compounded at 9.2% annually since its 2001 inception, outpacing the S&P 500's 8.5% over the same window. That long-run edge suggests software exposure remains a credible core allocation for growth investors.
Dividend investors face a clear tradeoff between breadth and yield, as detailed by The Motley Fool. The Vanguard High Dividend Yield ETF (VYM) charges a 0.04% expense ratio and manages $94.63 billion across more than 600 holdings.
The iShares Core High Dividend ETF (HDV) costs 0.08% and concentrates $13.57 billion into 74 names. VYM yields 2.24% trailing 12 months, while HDV offers a richer 2.88% yield backed by heavier weights in Exxon Mobil, Chevron, and Abbvie.
Sector tilts diverge sharply, with VYM weighted toward financial services at 20%, technology at 18%, and healthcare at 12%. HDV leans into consumer defensive at 24%, energy at 22%, and healthcare at 16%, giving each fund a distinct risk profile.
Over five years, a $1,000 investment in VYM grew to $1,718 versus $1,625 in HDV, per the same source. The breadth premium has historically rewarded VYM holders, even as HDV remains the income-first option.
On the consumer front, Walmart (WMT) reported 28.4 million Walmart+ members as of February 2026. As reported by The Motley Fool, those members spend four times more than nonmembers and visit Walmart sites seven times more often each year.
Subscription revenue rose by double digits last quarter, reinforcing the program's role as a retention flywheel. Even so, the stock fell 11.5% between the May 20 earnings release and May 29 after management held its 2027 fiscal guidance steady.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
