Software Sector Drawdown Regime Analysis

Fundamentals, Catalysts, and Risk Assessment

This analysis uses iShares Expanded Tech-Software Sector ETF (IGV) to analyse US software sector performance.

Executive Summary

• Drawdown Regime: IGV’s -34.7% trough depth places it in severe bear territory—exceeded only by dot-com, GFC, and 2022. Historical analogs imply 3+ years to full recovery, not quarters.

• Fundamental Drivers: Three structural forces …