Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?

If you're interested in broad exposure to the Technology - Software segment of the equity market, look no further than the Invesco AI and Next Gen Software ETF (IGPT), a passively managed exchange traded fund launched on June 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.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Software is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.Index DetailsThe fund is sponsored by Invesco. It has amassed assets over $1.26 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.CostsExpense 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 0.56%, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.01%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. 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 72.8% of the portfolio. Telecom and Industrials round out the top three.Looking at individual holdings, Sk Hynix Inc (Y8085F100) accounts for about 8.69% of total assets, followed by Alphabet Inc (GOOGL) and Micron Technology Inc (MU).The top 10 holdings account for about 60.15% of total assets under management.Performance and RiskThe ETF has added roughly 66.2% and was up about 103.44% so far this year and in the past one year (as of 06/29/2026), respectively. IGPT has traded between $48.4 and $108.11 during this last 52-week period.The ETF has a beta of 1.42 and standard deviation of 28.94% for the trailing three-year period. With about 113 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 excellent 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 $397.74 million in assets, iShares Expanded Tech-Software Sector ETF has $13.47 billion. XSW has an expense ratio of 0.35%, and IGV charges 0.39%.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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks