SaaStr: For the First Time in Modern History, Software Now Trades at a Discount to the S&P 500 — IGV Down 21% YTD, 30% From September Peak

SaaStr·high signal

The iShares software ETF (IGV) has fallen 21% year-to-date and roughly 30% from its September 2025 peak, marking the first time software has ever traded below the broader S&P 500 multiple in the modern era. Each new AI capability announcement — Claude Code for cybersecurity, Claude for legal — triggers fresh selloffs in the corresponding SaaS sector, as markets price in structural seat compression and eroding lock-in across the entire software stack.