Investing in the next generation of artificial intelligence winners is getting more comprehensive with the launch of a new exchange-traded fund based on 30 stock picks from one of Wall Street’s top analysts.
In what is likely the first of its kind, the IVES AI Revolution ETF mirrors the proprietary research of Dan Ives, the managing director and global head of technology research at Wedbush Securities.
"In 25 years covering tech, I've never seen a bigger theme than the AI revolution," Ives told FOX Business. "And we've tried to capture in our research the 30 companies in tech that best encompass this fourth industrial revolution theme across semi-software, infrastructure and autonomous. And that is really the inception. The AI revolution ETF."
The AI Revolution Theme; 30 Names to Play in the 4th Industrial Revolution. (Wedbush Securities )
Microsoft, Palantir, Meta, Tesla, Palo Alto and Nvidia are just a handful of names driving trillions in spending that began with the rollout of ChatGPT in 2022 and is being powered by AI chip giant Nvidia.
While some of these names have been hit by trade tensions between the U.S. and China as well as other tariff fears, that has not altered Ives' view.
"Tariffs are in the background, and they continue to create some uncertainty, but that doesn't change our view that this is a fourth industrial revolution," he added. "Two-trillion dollars is going to be spent over the next three years. Now, I believe we're still in the bottom of the first inning in terms of this non-inning game for AI. And the second, third derivative beneficiaries of tech are just starting to focus on AI."
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., holds up the company's AI accelerator chips for data centers. (Akio Kon/Bloomberg via Getty Images / Getty Images)
The ETF will trade under the aptly-named ticker, IVES, and will be up against some larger players with AI funds, including iShares, Fidelity and First Trust, as tracked by VettaFi. However, the firm believes it will have an edge with Ives and a fund that has "active insight and passive structure."
"I think, when you compare us to the other ones that are kind of tracking these arbitrary, whatever it may be, revenue hurdles or qualifiers based on some third-party having AI in their earnings report, whatever it may be, we're getting it from the source," said Cullen Rogers, Wedbush Fund Advisers' chief investment officer. "I think a lot of them are following trends. We're trying to define them through Dan's mouthpiece."
This is the firm’s first ETF.