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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
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The Invesco AI and Next Gen Software ETF (IGPT - Free Report) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Software segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $325.08 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.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 61.90% of the portfolio. Telecom and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc (GOOGL - Free Report) accounts for about 9.49% of total assets, followed by Meta Platforms Inc (META - Free Report) and Nvidia Corp (NVDA - Free Report) .
The top 10 holdings account for about 60.71% of total assets under management.
Performance and Risk
Year-to-date, the Invesco AI and Next Gen Software ETF has gained about 16.94% so far, and it's up approximately 0% over the last 12 months (as of 06/04/2024). IGPT has traded between $30.45 and $46.39 in this past 52-week period.
The ETF has a beta of 1.01. With about 98 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 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.
SPDR S&P Software & Services ETF (XSW - Free Report) tracks S&P Software & Services Select Industry Index and the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) tracks S&P North American Technology-Software Index. SPDR S&P Software & Services ETF has $356.08 million in assets, iShares Expanded Tech-Software Sector ETF has $5.78 billion. XSW has an expense ratio of 0.35% and IGV charges 0.41%.
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.
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Should You Invest in the Invesco AI and Next Gen Software ETF (IGPT)?
The Invesco AI and Next Gen Software ETF (IGPT - Free Report) was launched on 06/23/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Software segment of the equity market.
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.
Investor-friendly, sector ETFs provide many options 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $325.08 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.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 61.90% of the portfolio. Telecom and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc (GOOGL - Free Report) accounts for about 9.49% of total assets, followed by Meta Platforms Inc (META - Free Report) and Nvidia Corp (NVDA - Free Report) .
The top 10 holdings account for about 60.71% of total assets under management.
Performance and Risk
Year-to-date, the Invesco AI and Next Gen Software ETF has gained about 16.94% so far, and it's up approximately 0% over the last 12 months (as of 06/04/2024). IGPT has traded between $30.45 and $46.39 in this past 52-week period.
The ETF has a beta of 1.01. With about 98 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 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.
SPDR S&P Software & Services ETF (XSW - Free Report) tracks S&P Software & Services Select Industry Index and the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) tracks S&P North American Technology-Software Index. SPDR S&P Software & Services ETF has $356.08 million in assets, iShares Expanded Tech-Software Sector ETF has $5.78 billion. XSW has an expense ratio of 0.35% and IGV charges 0.41%.
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.