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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
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Designed to provide broad exposure to the Technology - Software segment of the equity market, the Invesco AI and Next Gen Software ETF (IGPT - Free Report) is a passively managed exchange traded fund launched on June 23, 2005.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $1.22 billion, making it one of the larger 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that 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, Advanced Micro Devices Inc (AMD) accounts for about 9.27% of total assets, followed by Meta Platforms Inc (META) and Micron Technology Inc (MU).
The top 10 holdings account for about 61.06% of total assets under management.
Performance and Risk
The ETF has added roughly 38.78% and is up roughly 34.28% so far this year and in the past one year (as of 11/04/2026), respectively. IGPT has traded between $54.18 and $108.11 during this last 52-week period.
The ETF has a beta of 1.48 and standard deviation of 30.89% for the trailing three-year period. With about 116 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 an outstanding 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 $523.74 million in assets, iShares Expanded Tech-Software Sector ETF has $13.25 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.38%.
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.
View the Zacks #1 Rank List
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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
Designed to provide broad exposure to the Technology - Software segment of the equity market, the Invesco AI and Next Gen Software ETF (IGPT - Free Report) is a passively managed exchange traded fund launched on June 23, 2005.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $1.22 billion, making it one of the larger 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
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that 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, Advanced Micro Devices Inc (AMD) accounts for about 9.27% of total assets, followed by Meta Platforms Inc (META) and Micron Technology Inc (MU).The top 10 holdings account for about 61.06% of total assets under management.
Performance and Risk
The ETF has added roughly 38.78% and is up roughly 34.28% so far this year and in the past one year (as of 11/04/2026), respectively. IGPT has traded between $54.18 and $108.11 during this last 52-week period.
The ETF has a beta of 1.48 and standard deviation of 30.89% for the trailing three-year period. With about 116 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 an outstanding 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 $523.74 million in assets, iShares Expanded Tech-Software Sector ETF has $13.25 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.38%.
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.