Designed to provide broad exposure to the Technology - Software segment of the equity market, the Invesco AI and Next Gen Software ETF (IGPT Quick QuoteIGPT - Free Report) is a passively managed exchange traded fund launched on June 23, 2005.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Software is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.

Index Details

The fund is sponsored by Invesco. It has amassed assets over $606.62 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Software segment of the equity market. IGPT seeks to match the performance of the STOXX WORLD AC NEXGEN SOFTWARE DEV ID before fees and expenses.

The STOXX World AC NexGen Software Development Index is comprised of companies with significant exposure to technologies or products that contribute to future software development through direct revenue.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.05%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Information Technology sector -- about 62.8% of the portfolio. Telecom and Healthcare round out the top three.

Looking at individual holdings, Alphabet Inc (GOOGL) accounts for about 9.91% of total assets, followed by Nvidia Corp (NVDA) and Meta Platforms Inc (META).

The top 10 holdings account for about 56.97% of total assets under management.

Performance and Risk

So far this year, IGPT has added about 25.79%, and was up about 24.26% in the last one year (as of 10/20/2025). During this past 52-week period, the fund has traded between $35.18 and $57.66.

The ETF has a beta of 1.13 and standard deviation of 25.5% for the trailing three-year period. With about 99 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco AI and Next Gen Software ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGPT is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

SPDR S&P Software & Services ETF (XSW) tracks S&P Software & Services Select Industry Index and the iShares Expanded Tech-Software Sector ETF (IGV) tracks S&P North American Technology-Software Index. SPDR S&P Software & Services ETF has $468.00 million in assets, iShares Expanded Tech-Software Sector ETF has $9.88 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.39%.

Bottom Line

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