IGPT ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF invests in companies driving artificial intelligence and next-generation software innovation. It is built around growth stocks in the semiconductor and software sectors.
SubscribeWhat Is This ETF?
The fund replicates an index that tracks the performance of next-generation software development companies around the world, and it holds companies that earn most of their revenue in related fields. The portfolio is built around the core technology companies that underpin the AI era.
It suits investors who want exposure to the long-term growth driven by the artificial intelligence revolution and who can tolerate the volatility of the software and semiconductor sectors.
It is a passively managed (index-tracking) ETF launched by Invesco in 2005.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | STOXX World AC NexGen Software Dev |
| Management Style | Passive (AI theme) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Annual |
| Total Expense Ratio | 0.57% |
It uses a modified market-capitalization weighting method, covering not only large caps but also small and mid-sized innovative companies. By selecting stocks across the entire AI ecosystem, it applies a diversified strategy that is not limited to software and also includes related hardware companies.
- Refined stock selection based on share of AI revenue
- Exposure to next-generation software leaders in global markets
Size and Costs
Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.57% per year.
Compared with similar AI-themed products such as AIQ and CHAT, this fund reflects Invesco's long experience in managing software ETFs.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeBuoyed by the steep growth of generative AI and rising demand for cloud infrastructure, the fund is showing upward momentum. It shows a high degree of performance linkage to technological progress and to the investment scale of Big Tech companies.
As AI investment becomes mainstream in the market, theme-related capital is concentrating in the space. Investor interest has risen further since the fund shifted from its earlier software-focused strategy to an AI-specialized strategy.
Strengths and Weaknesses
The portfolio offers direct exposure to the benefits of AI technology innovation, but it carries the heavy valuation burden typical of tech stocks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
BAI and ARTY, shown in the table, are recently launched AI-themed products, while LIT is a battery theme product with a different character from AI hardware. Direct alternatives include AIQ, which invests across AI broadly, and CHAT, which specializes in generative AI. If you want theme exposure at a lower cost, WTAI is also worth considering. In addition, IGV is a good comparison if you want to focus on the pure software sector, and SMH is a good comparison if you want a higher semiconductor weighting.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 BAI | iShares A.I. Innovation and Tech Active ETF | $43.62 | +2.5% | $13.2B | 0.55% | 1.36% | +17.4% |
 AIQ | Global X Artificial Intelligence & Technology ETF | $64.40 | +1.2% | $10.3B | 0.68% | 0.07% | +21.1% |
 ARTY | iShares Future AI & Tech ETF | $74.47 | +3.0% | $3.8B | 0.47% | 0.06% | +47.7% |
 CHAT | Roundhill Generative AI & Technology ETF | $83.27 | +2.6% | $1.7B | 0.75% | 2.02% | +24.3% |
 LIT | Global X Lithium & Battery Tech ETF | $62.69 | +0.1% | $1.2B | 0.75% | 0.8% | +3.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| GOOG | Alphabet Inc | 0.09% | $321.89 | +1.6% | $3.96T | 16.2 | 0.25% |
| NVDA | NVIDIA Corp | 0.16% | $215.38 | -1.2% | $5.19T | 27.2 | 0.36% |
| META | Meta Platforms Inc | 0.09% | $612.49 | -1.2% | $1.57T | 20.9 | 0.31% |
| AMD | Advanced Micro Devices Inc | 0.15% | $578.44 | +3.2% | $944.3B | 148.4 | - |
| MU | Micron Technology Inc | 0.15% | $983.23 | +5.9% | $1.11T | 13.3 | 0.07% |
| GOOGL | Alphabet Inc | 0.08% | $324.89 | +1.3% | $3.95T | 16.3 | 0.25% |
| INTC | Intel Corp | 0.07% | $95.53 | +1.9% | $505.0B | - | 0.04% |
Investor Checkpoints
IGPT is one valid option for investors who want to share in the fruits of artificial intelligence technology, a core part of the Fourth Industrial Revolution. Please review the following points carefully before investing.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Level | Check the operating cost level typical of thematic ETFs | Moderate |
| 💻 AI Exposure | Review the share of AI-related revenue in the portfolio | Very high |
| 📊 Company Size | Check the mix of large-cap and small and mid-cap stocks | Balanced |
| 📈 Interest Rate Sensitivity | Understand how interest rate changes affect the growth stock sector | Needs review |
The rapid pace of change in AI technology and the reshaping of the competitive landscape are the main risk factors. Keep in mind that if a particular company loses its technological edge, returns could be negatively affected.
It is a suitable solution for aggressive investors who want to concentrate on the software companies leading next-generation technology innovation. Its portfolio construction is well positioned to benefit from long-term technology growth.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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