Designed to provide broad exposure to the technology software segment of the stock market, the Invesco AI and Next Gen Software ETF (IGPT – Free Report) is a passively managed exchange-traded fund launched on June 23, 2005.
Retail and institutional investors are increasingly choosing passively managed ETFs because they offer low costs, transparency, flexibility and tax efficiency; These types of funds are also excellent vehicles for long-term investors.
Investor-friendly sector ETFs offer many opportunities to gain diversified, low-risk exposure to a broad group of companies in certain sectors. Technology – Software is one of 16 broad Zacks sectors within the Zacks Industry Classification. It is currently ranked number 1, putting it in the top 6%.
Index details
The fund is sponsored by Invesco. It has amassed assets of more than $606.62 million, making it one of the mid-sized ETFs trying to match the performance of the technology-software segment of the stock market. IGPT strives to match the performance of the STOXX WORLD AC NEXGEN SOFTWARE DEV ID, excluding costs and fees.
The STOXX World AC NexGen Software Development Index consists of companies with significant exposure to technologies or products that contribute to future software development through direct revenue.
Costs
When assessing an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts over the long term, all other factors being equal.
The annual operating expense for this ETF is 0.58%, which puts it on par with most similar products in the industry.
It has a 12-month rolling dividend yield of 0.05%.
Sector exposure and top positions
ETFs provide diversified exposure to minimize individual stock risk, but it is still important to familiarize yourself with a fund’s investments before investing. Most ETFs are highly transparent products and many disclose their holdings daily.
This ETF has the largest allocation in the information technology sector: approximately 62.8% of the portfolio. Telecom and Healthcare complete 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 approximately 56.97% of the total assets under management.
Performance and risk
So far this year, IGPT has added about 25.79%, and is up about 24.26% over the past year (as of 10/20/2025). Over the past 52 weeks, the fund has traded between $35.18 and $57.66.
The ETF has a beta of 1.13 and a standard deviation of 25.5% for the trailing three-year period. With approximately 99 investments, the company effectively diversifies company-specific risk.
Alternatives
Invesco AI and Next Gen Software ETF has a Zacks ETF Rank of 2 (Buy), which is based on the asset class’s expected return, expense ratio and momentum, among other factors. This makes IGPT an excellent option for investors looking for exposure to the technology ETFs segment of the market. There are other complementary ETFs in the space that investors could also consider.
SPDR S&P Software & Services ETF (XSW) tracks the S&P Software & Services Select Industry Index and the iShares Expanded Tech-Software Sector ETF (IGV) tracks the 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%.
In short
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