Thematic ETFs blossomed with 2019’s ETF rule, but since then, many have struggled and some have even folded. While the ETF wrapper offers plenty of flexibility and potential for creativity, that doesn’t necessarily help thematics find their overall niche in portfolios. One new issuer, however, has arrived on the scene with the aim of breaking the thematic ETF mold. The AI ETF AIS not only offers pure play exposure to the so-called “AI supercycle,” but also plans to set itself apart from how other thematic funds operate.
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The VistaShares Artificial Intelligence Supercycle ETF (AIS) launched in December. The fund charges a 75 basis points fee to actively invest in global AI firms of various size. Its managers aim to capture long-term trends, investing in firms based on factors including liquidity and thematic alignment. It weights its firms based on AI ecosystem relevance, as well. Specifically, AIS actively invests in global AI firms in semiconductors, data centers, and AI-enabled applications.
AI ETF AIS Takes Aim at Thematic ETF Territory
What, then, does the fund do to set itself apart in a crowded thematic ETF world? According to issuer VistaShares, the strategy aims to invest in more than just the megacap names that lead a given theme. That, according to its press release, has frequently contributed to thematic ETFs’ downfall, failing to outperform other indexes.
““The case for thematic investing is obvious but to this point investors have not been well served by the typical thematic ETF, which is too often marked by overconcentration in the ‘big names’ tied to a particular trend and underexposure,” said Adam Patti, CEO of VistaShares.
“Sometimes, investors have no exposure to the companies that are fostering real innovation, and which will be a themes’ driving force for decades to come.”
The AI ETF has done well to start 2025, returning 7.9%, per ETF Database data. That outperformed both its ETF Database category and FactSet segment averages. For those looking for an AI ETF looking to beat thematic ETF stereotypes, AIS may be worth watching.
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