Key Points
The Invesco AI and Next Gen Software ETF (NYSEMKT: IGPT) has $652 million in assets under management and recently pivoted to focus on AI, reflecting a shift in its investment strategy. Launched 20 years ago and initially software-focused, the ETF changed its name and index in June 2023 to cater to the growing AI sector.
Currently, the ETF holds 100 stocks, with over 43% allocated to semiconductor companies. Nvidia is its second-largest holding. Despite Nvidia outpacing the ETF by more than 5-to-1 between 2024 and 2025, the ETF slightly outperformed the Nasdaq-100, showcasing its potential for diversification and steady growth.
Goldman Sachs projects that the market for AI-powered customer service software could grow by 20% to 45% by 2030, which supports the ETF’s long-term growth prospects despite the likelihood it won’t match Nvidia’s returns.
