Invesco AI and Next Gen Software ETF

IGPT

Market cap $682M

AI stocks have been helping power the market higher for the past three years. The Roundhill's Generative AI ETF, Global X Artificial Intelligence & Technology ETF, and Invesco AI and Next Gen Software ETF are all great ways to invest in the AI trend.

Artificial intelligence has become the defining investment theme of the decade, but most investors face a dilemma: concentrate in a handful of chip makers or spread across hundreds of tech stocks and dilute exposure?

As the 2026 market landscape takes shape, artificial intelligence (AI) continues to serve as the primary catalyst for global equity performance.  According to BlackRock's 2026 outlook, AI remains the “dominant theme” for the investment community, fueling a capital-intensive expansion that is fundamentally supporting corporate earnings and broader macroeconomic growth.

This ETF has an interesting history as it was born as a software fund. Now it resides at the high-growth intersection of AI and software.

The Invesco AI and Next Gen Software ETF (IGPT) was launched on June 23, 2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Software segment of the equity market.

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 June 23, 2005.

The Invesco AI and Next Gen Software ETF (IGPT) uses a revenue-weighted methodology to capture AI and software growth, distinguishing itself from market-cap rivals. IGPT's approach reduces concentration risk, offers a value tilt, and provides broader sector exposure, but remains top-heavy with familiar tech giants. With a high P/E and forward P/B, IGPT is best suited for long-term investors willing to endure volatility and potential near-term losses as the AI hype cools.

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.

Invesco AI and Next Gen Software ETF includes software, semis, cloud, and AI leaders across sectors - beyond what GICS-restricted tech ETFs like VGT or XLK allow. Focuses on companies with majority AI/software revenue, enabling inclusion of Meta, Alphabet, and global innovators excluded elsewhere. Allows emerging markets and cross-sector names like healthcare or real estate if AI revenues qualify - adding unique diversification.

IGPT underperforms its benchmark and peers, with low 5-year returns and a notable lag behind its own index. The fund is highly concentrated in its top 10 holdings, increasing risk and correlation with broader equity markets. Despite strong AI market growth projections, IGPT's high fees and poor liquidity make it less attractive than alternatives like AIQ and BAI.