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IGV ETF Outperforms, MSFT Lags
Analysis of iShares Expanded Tech-Software Sector ETF (IGV) outperformance and Microsoft's (MSFT) relative underperformance.
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- How has Microsoft's performance compared to the IGV ETF?
- Microsoft (MSFT), while a major software stock and a significant holding in IGV, has underperformed the ETF recently. Despite dips being bought, rallies have been sold, resulting in a relatively flat short-term performance.
- What does the relative strength of MSFT compared to IGV indicate?
- The relative weakness of MSFT compared to IGV has created an oversold condition, only seen twice in the last ten years. This potentially signals a reversal and future strength for MSFT, potentially boosting IGV further.
- Which stocks have been the main drivers of IGV's recent performance?
- While IGV has 118 components, 80 have index weightings under 0.5%, meaning a small number of holdings have driven its recent success. Eight stocks are specifically mentioned as key contributors to IGV's gains.
- What is the significant performance difference between IGV and XLK since May 2024?
- The iShares Expanded Tech-Software Sector ETF (IGV) has significantly outperformed the SPDR Technology Trust ETF (XLK) since May 2024, with gains of +23% versus +10%, respectively. This outperformance has accelerated recently, with IGV reaching new all-time highs.
- What does the technical analysis of Microsoft's charts suggest about its future performance?
- Despite MSFT's recent underperformance relative to IGV, its weekly chart suggests a possible breakout. It is currently consolidating within a symmetrical triangle pattern, a situation that has historically preceded breakouts in the past.