Launched on June 23, 2005, the Invesco AI and Next Gen Software ETF (IGPT) is a passively managed, exchange-traded fund designed to provide broad exposure to the technology-software segment of the stock market.
Passively managed ETFs are an increasingly popular option among retail and institutional investors, offering low costs, transparency, flexibility and tax efficiency; they are also excellent tools for long-term investors.
Sector ETFs also give investors access to a broad group of companies in certain sectors that offer low risk and diversified exposure. 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%.
The fund is sponsored by Invesco. It has amassed assets of more than $644.68 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.
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 0.56%, which puts it on par with most similar products in the industry.
It has a 12-month rolling dividend yield of 0.04%.
It’s important to research an ETF’s holdings before investing, despite the many benefits of these types of funds, such as diversified exposure, which minimizes individual stock risk. And most ETFs are highly transparent products that disclose their holdings daily.
This ETF has the largest allocation in the information technology sector: approximately 62.4% of the portfolio. Telecom and Healthcare complete the top three.
Looking at individual holdings, Alphabet Inc (GOOGL) accounts for approximately 9.36% of total assets, followed by Advanced Micro Devices Inc (AMD) and Micron Technology Inc (MU).
The top 10 holdings account for approximately 61.34% of the total assets under management.
The ETF has added about 29.99% so far this year and is up about 29.88% over the past year (as of 12/22/2025). Over the past 52 weeks, it has traded between $35.18 and $61.5.
The ETF has a beta of 1.13 and a standard deviation of 25.71% for the trailing three-year period. With approximately 113 investments, the company effectively diversifies company-specific risk.
