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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
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Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the Invesco AI and Next Gen Software ETF (IGPT - Free Report) , a passively managed exchange traded fund launched on June 23, 2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways 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 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $843.62 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.04%.
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 66.7% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 11.17% of total assets, followed by Sk Hynix Inc and Nvidia Corp (NVDA).
The top 10 holdings account for about 63.29% of total assets under management.
Performance and Risk
The ETF return is roughly 26.67% and was up about 88.2% so far this year and in the past one year (as of 04/27/2026), respectively. IGPT has traded between $40.58 and $75.33 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 26.49% for the trailing three-year period. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco AI and Next Gen Software ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGPT is a great 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.
State Street 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. State Street SPDR S&P Software & Services ETF has $360.36 million in assets, iShares Expanded Tech-Software Sector ETF has $12.46 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.39%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
Looking for broad exposure to the Technology - Software segment of the equity market? You should consider the Invesco AI and Next Gen Software ETF (IGPT - Free Report) , a passively managed exchange traded fund launched on June 23, 2005.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways 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 2, placing it in top 13%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $843.62 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.56%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.04%.
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 66.7% of the portfolio. Telecom and Industrials round out the top three.
Looking at individual holdings, Micron Technology Inc (MU) accounts for about 11.17% of total assets, followed by Sk Hynix Inc and Nvidia Corp (NVDA).The top 10 holdings account for about 63.29% of total assets under management.
Performance and Risk
The ETF return is roughly 26.67% and was up about 88.2% so far this year and in the past one year (as of 04/27/2026), respectively. IGPT has traded between $40.58 and $75.33 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 26.49% for the trailing three-year period. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco AI and Next Gen Software ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGPT is a great 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.
State Street 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. State Street SPDR S&P Software & Services ETF has $360.36 million in assets, iShares Expanded Tech-Software Sector ETF has $12.46 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.39%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.