This New ETF Allows You to Invest in the Software That Runs the Economy

How the AOTS Works

The AOT Software Platform ETF (AOTS) is built around a simple idea. The most influential companies today are those that operate software platforms powering entire digital ecosystems.

AOTS tracks the AOT VettaFi Software Platform Index, a rules-based benchmark designed to identify companies driving this structural shift.

To construct the index, eligible firms must generate at least 20 percent of their revenue from software-driven activities and meet defined standards for liquidity, market size, and profitability.

Companies are then scored on cost of goods sold to revenue ( as known as low marginal cost, AOT Invest’s specialty), price to earnings ratio, return on invested capital, and market presence.

The top 50 names are selected, with strict weighting caps and quarterly rebalancing applied to maintain diversification and consistency as the software landscape evolves.

Why AOTS Should Be on Your Radar

AOTS targets a segment of the market with strong long-term growth potential while maintaining a disciplined risk profile.

By including only profitable companies, the strategy aims to reduce volatility often associated with tech-focused portfolios. It also broadens exposure beyond traditional technology classifications, capturing companies across sectors that rely on or build critical software platforms.

This includes names such as Alphabet, Amazon, and Visa. The result is a diversified approach to investing in the software platforms that underpin modern business operations.

“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. Companies such as Google, Visa, and Amazon develop software to power advertising, search, payments, e-commerce, and web services, which is why they are included in AOTS. The fund moves beyond traditional market-cap weighting by combining market capitalization with factor rankings and excluding unprofitable companies. This approach helps concentrate the portfolio on businesses with strong earnings growth potential while avoiding unprofitable and overvalued firms. There are very few software ETFs in the market, and I believe AOTS will, over time, prove to be an innovative offering that helps investors build wealth and strategically target one of the historically best-performing subsectors of technology, what I like to call ‘common sense software,” said John Tinsman, CEO and Portfolio Manager of AOTS at AOT Invest.

About AOT Invest

AOT Invest’s mission is to maximize investment appreciation by focusing on high growth, low marginal cost businesses. At the intersection of high revenue growth and low marginal cost is the opportunity for tremendous earnings growth and share price appreciation. AOT positions its ETFs to benefit by investing in companies at the convergence of these attributes. Investors can learn more about AOT Invest at AOTETF.com

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.