Monthly rolling five-year returns for software stocks drop to +29.4%, the lowest level in over a decade amid investor pullback.
Software exchange-traded funds are experiencing record outflows as the sector faces mounting pressure, with rolling five-year monthly returns falling to +29.4%. This marks the weakest performance since 2013, signaling a sharp decline in investor confidence and sector momentum.
The downturn follows a period of elevated valuations and slowing growth, contrasting with the sector’s strong performance in previous years. Analysts point to rising interest rates and shifting market preferences as key drivers behind the pullback.
While the immediate market reaction remains muted, the outflows reflect broader concerns about the sector’s ability to sustain historical growth rates.