AOT Invest launched a software platform exchange-traded fund Tuesday that uses quality metrics rather than market capitalization alone to weight holdings selected from the range of companies building the infrastructure behind modern applications.
See more: AOT Launches Leveraged Software Platform ETF SOFL
The AOT Software Platform ETF (AOTS) tracks the AOT VettaFi Software Platform Index, which ranks companies on three equally weighted factors — cost of goods sold to revenue, earnings-to-price ratio, and return on invested capital — before assigning portfolio weights, according to the fund’s prospectus. AOTS charges a 0.49% management fee.
“The AOT Software Platform ETF allows investors to gain exposure to software-oriented companies regardless of their sector classification, increasing diversification and potentially enhancing returns," said said John Tinsman, CEO and Portfolio Manager of AOTS.
The methodology differs from leading technology ETFs by incorporating profitability measures alongside market presence and excluding unprofitable companies entirely, according to the firm. The strategy aims to invest in software platforms that operate with near-zero marginal costs at scale and generate recurring subscription revenue.
The fund’s scope extends beyond traditional technology classifications to capture companies where software platforms enable core business functions, according to firm. Holdings include payment processors Visa Inc. (V) and Mastercard Inc. (MA), which account for 10.5% of the fund combined.
Fifty Companies Make the Cut
Top holdings include Nvidia Corp. (NVDA), Meta Platforms Inc. (META), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL), representing 32.9% of the fund, according to AOT. Streaming platform Netflix Inc. (NFLX) and database software provider Oracle Corp. (ORCL) also rank among the top ten.
The index holds 50 companies and filters for those deriving at least 20% of revenue from software-driven business activities with positive price-to-earnings ratios, according to the prospectus. Individual positions carry a 7.5% maximum weight and 0.5% minimum weight.
The firm views software platforms as well-positioned for artificial intelligence adoption while operating with near-zero marginal costs at scale.
“Many investors are looking to technology themed strategies to outperform in 2026, “ explained Todd Rosenbluth, head of research at TMX VettaFi. “This new index based ETF provides a more thematic approach to software than a traditional industry ETF.”
For more news, information, and analysis, visit "VettaFi | ETF Trends":http://etftrends.com/.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AOTS, for which it receives an index licensing fee. However, AOTS is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AOTS.
