Business Software & Services Industry ETF

DEFINITION of 'Business Software & Services Industry ETF'

An exchange-traded fund (ETF) that invests in business software companies, with the objective of replicating the performance of an underlying software index. A business software and services ETF includes companies engaged in a diverse range of business activities that are driven by software - from productivity and enterprise information management, to security and customer relationship management. These ETFs are better known as software ETFs.

BREAKING DOWN 'Business Software & Services Industry ETF'

A software ETF will outperform when business demand for technology is robust, which is the case when the economy is in growth mode. Software ETFs generally include U.S. giants such as Microsoft and Oracle, as well as smaller companies like Salesforce.com, Adobe Systems and Intuit. Depending on the index on which the ETF is based, the fund may hold U.S. software companies only, or may include overseas companies like SAP and Check Point Software as well.

RELATED TERMS
  1. Currency Trading Software

    Trading software to help the currency trader with forex trading ...
  2. Trading Software

    Computer programs that facilitate trading of financial products ...
  3. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  4. Software As A Service - SaaS

    A cloud-computing approach to providing users with access to ...
  5. Accounting Software

    Computer programs that assist bookkeepers and accountants in ...
  6. Forex Forecasting Software

    An analytical tool used to help currency traders with forex trading ...
Related Articles
  1. Trading

    The Top 10 Hidden Factors Affecting Software Stocks

    Want to invest in software? Here are the most important factors affecting profits, revenues, and stock price of software companies
  2. Managing Wealth

    World's top 10 Software Companies

    Want to invest in software stocks but finding it difficult to identify companies with major software revenue? Here is a list of top software companies
  3. Markets

    The Industry Handbook: Software Industry

    Discover how the software industry has changed throughout the years to become a mainstay for businesses from programming to software as a service.
  4. Trading

    The Vital Importance of Choosing The Right Day Trading Software

    Software has made day trading quick and automatic--all the more reason to be as painstaking as possible when choosing the right one for your needs.
  5. Markets

    The 5 Biggest Chinese Software Companies (CHL, TCEHY)

    Read about the five largest and most influential software companies in China, including a new startup considered to be an upcoming superstar.
  6. Personal Finance

    Tax Software Vs a CPA: Which Is Right For You?

    There are occasions when software will suffice, and others that require an accountant’s expertise. Here how to decide which is right for you.
  7. ETFs & Mutual Funds

    How To Pick The Best ETF

    Of the hundreds of exchange-traded funds on the market, some are bound to fail. Learn how to pick the best of the bunch.
  8. ETFs & Mutual Funds

    The Advantages of ETFs Compared to Index Funds

    With the ongoing ETF boom, ETFs gain more variety and increased competition in the market leads to further investors' advantages compared to index funds.
  9. Investing

    A Look At the Growth Of the ETF Industry

    Explore the phenomenal growth rate of the ETF industry, and learn some of the principal reasons why ETFs are projected to continue to grow at a rapid pace.
  10. Financial Advisor

    7 Popular Software Programs for Portfolio Managers

    For retail investors and money managers, portfolio management software makes life easier. Here are synopses of seven popular programs.
RELATED FAQS
  1. How does portfolio management software work?

    Discover the functions of various complexity levels of portfolio management software, and learn how traders utilize portfolio ... Read Answer >>
  2. Is there an ETF composed of other ETFs?

  3. What are some of the better types of financial analysis software?

    Discover what features make for good financial analysis software, some popular options and why analysts need to pick the ... Read Answer >>
  4. What exactly is an ETF portfolio?

    Learn what exchange-traded funds (ETFs) are and their advantages to investors, what a portfolio of ETFs is, and discover ... Read Answer >>
  5. What is the best general ledger software for small businesses?

    Learn more about accounting software and general ledger features. Find out how to choose the right program for small business ... Read Answer >>
  6. What is the best software for calculating the cash budget of an individual?

    Explore the options and features of several leading personal finance tools to find the best software for calculating your ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center