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AI is everywhere in the product. But revenue growth is decelerating, from 16% to 13% to 12% guided. The productivity benefits are arriving for users and end-consumers of AI, though it's not hitting the income statement (at least yet) for most companies.
Markets are embracing the idea that we are in an AI supercycle. Investors are betting on a multi-decade technological shift, similar to the internet, that will transform industries, computing, and infrastructure.
I rate the Invesco AI and Next Gen Software ETF a BUY because I believe the next phase of the AI cycle will continue favoring semiconductor, memory, and infrastructure companies already benefiting from strong AI-related capital spending. Despite its name, IGPT is heavily positioned toward AI infrastructure leaders such as NVIDIA, AMD, Micron, Alphabet, and Meta, providing targeted exposure to the companies enabling AI development. While the ETF's concentration and volatility increase risk, I believe those characteristics are justified by its exposure to one of the strongest areas of technology investment over the next 6–12.
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.
As the number of tech exchange-traded funds (ETFs) continues to rise along with investor demand for the sector, it can become more challenging for investors to distinguish among offerings. Looking at details—unique strategies, portfolio construction, costs, liquidity, and so on—can make all the difference for investors seeking to maximize their returns while the sector is hot.
Software-focused ETFs are gaining attention as AI adoption boosts demand for enterprise applications, cloud services, and cybersecurity.
There have been hiccups along the way, but the artificial intelligence (AI) rollout feels unrelenting this year. A bevy of ETFs reflect related ebullience, but responses across the landscape of AI-inclined ETFs aren't linear.
The Invesco AI and Next Gen Software ETF (NASDAQ:IGPT) has had the kind of stretch that turns a niche thematic fund into a portfolio anchor: shares are around $100, up roughly 68% year to date and 121% over the past year.
SEC filings for IGPT aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.