AOT Invest Launches Software Platform ETF

Core Insights - AOT Invest has launched the AOT Software Platform ETF (AOTS), which utilizes quality metrics rather than solely market capitalization to weight its holdings [1][2] - The ETF tracks the AOT VettaFi Software Platform Index (SOFT), focusing on profitability measures and excluding unprofitable companies [3][6] Fund Structure and Strategy - AOTS charges a management fee of 0.49% and ranks companies based on three equally weighted factors: cost of goods sold to revenue, earnings-to-price ratio, and return on invested capital [1][2] - The fund includes 50 companies that derive at least 20% of their revenue from software-driven activities and have positive price-to-earnings ratios [6] Holdings and Diversification - Top holdings include Nvidia Corp. (NVDA), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), and Alphabet Inc. (GOOGL), which together represent 32.9% of the fund [5] - The fund also includes payment processors Visa Inc. (V) and Mastercard Inc. (MA), accounting for 10.5% of the total [4] Market Positioning - The ETF aims to provide exposure to software-oriented companies across various sectors, enhancing diversification and potential returns [2] - The strategy is designed to capitalize on software platforms that operate with near-zero marginal costs and generate recurring subscription revenue, positioning them well for artificial intelligence adoption [3][6]