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) is a passively managed exchange traded fund launched on 06/23/2005.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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 6, placing it in top 38%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $454 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.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.Sector Exposure and Top HoldingsEven 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 60.60% of the portfolio. Telecom and Healthcare round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.40% of total assets, followed by Alphabet Inc (GOOGL) and Meta Platforms Inc (META).The top 10 holdings account for about 57.94% of total assets under management.Performance and RiskThe ETF has added about 5.63% so far this year and is up about 11.03% in the last one year (as of 02/12/2025). In that past 52-week period, it has traded between $40.26 and $49.76.The ETF has a beta of 1.02 and standard deviation of 22.57% for the trailing three-year period. With about 99 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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.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 $581.79 million in assets, iShares Expanded Tech-Software Sector ETF has $11.55 billion. XSW has an expense ratio of 0.35% and IGV charges 0.41%.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco AI and Next Gen Software ETF (IGPT): ETF Research Reports NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report SPDR S&P Software & Services ETF (XSW): ETF Research Reports iShares Expanded Tech-Software Sector ETF (IGV): ETF Research Reports Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks