Published:
The selloff in software stocks is compounding on Tuesday, reinforcing the software sector’s historic underperformance relative to the chip sector.
Jessica Rabe, the co-founder of DataTrek Research, recently looked at the 100-day trailing returns of the VanEck Semiconductor ETF
SMH and the iShares Expanded Tech-Software Sector ETF IGV, two exchange-traded funds viewed as proxies for their respective industries. She noted that chips are now outperforming software by roughly 5 standard deviations, which she called an “unprecedented” divergence.
