New Software ETF Aims to Capture Profitability, Not Just Market Cap Dominance

AOT Invest has launched the AOT Software Platform ETF (NYSE:AOTS) to capture companies building digital applications, focusing on profitability and efficiency measures. The index includes 50 companies, capped at 7.5%, with a minimum 0.5% weight, and a 20% revenue requirement from software activities. The top five holdings are Nvidia, Meta, Microsoft, Amazon, and Alphabet, with a 0.49% expense ratio. The ETF aims to benefit from the next stage of AI adoption, as software platforms typically operate with nearly zero marginal costs and recurring subscription revenue.