The chart illustrates the historical difference in drawdowns between the Software Industry and the S&P 500 Index over time.
As of March 1, 2026, the drawdown of the Software Industry was -30.8% while the drawdown of the S&P 500 Index was -1.4%.
The chart may help illustrate the potential benefits of diversification. For example, the Software Industry has recently experienced a much deeper drawdown than the S&P 500 Index, which includes exposure across multiple sectors and industry groups. It is important to keep in mind that diversification does not ensure a profit or guarantee against a loss.