Wedbush Securities’ Dan Ives recently launched an artificial intelligence exchange-traded fund (ETF) called the Dan Ives Wedbush AI Revolution ETF, which trades under the ticker IVES. Ives, the firm’s global head of technology research, believes that software is the subcategory to watch within the AI space as it is currently experiencing a “golden age.”
In an interview on CNBC’s “ETF Edge,” Ives emphasized the importance of understanding which companies are truly AI players within the software sector. He stated, “Just because they say ‘AI’ on a conference call doesn’t make them an AI player.” His goal with the ETF is to focus on stocks that are transforming the AI landscape and identify names that may not be traditionally considered AI companies.
Oracle is one of the companies that Ives believes will be at the epicenter of the AI theme in the coming months. As of Tuesday’s market close, Oracle shares have surged almost 62% in the past two months and are one of the top holdings in the IVES ETF. Other software holdings in the fund include Palantir, IBM, and Salesforce, all of which have seen significant gains in recent months.
The IVES ETF covers a total of 30 companies across various industries, including hyperscalers, cybersecurity, consumer platforms, and robotics. Ives compiled the list based on extensive research into major AI players to provide investors with a diversified portfolio to capitalize on the AI revolution.
The fund’s top three holdings are Microsoft, Nvidia, and Broadcom, with smaller tech names like SoundHound and Innodata also included. Since its launch on June 4, IVES has seen a nearly 3% increase and has $183 million in assets under management as of Tuesday. Ives plans to reevaluate the ETF’s holdings every quarter to ensure it reflects the evolving AI landscape.
Despite the recent surge in tech stocks, Ives believes that the tech trade is still a worthwhile investment for those who may have missed out on previous gains. He argues that focusing solely on valuation could cause investors to miss out on transformative tech stocks, citing the success of tech companies over the past two decades.
In conclusion, the Dan Ives Wedbush AI Revolution ETF offers investors a unique opportunity to tap into the growing AI market through a diversified portfolio of companies at the forefront of the technology revolution. With Ives’ expertise and ongoing evaluation of the ETF’s holdings, investors can stay ahead of the curve in the ever-evolving AI landscape.
