
That theme is expected to continue this year. And it could benefit ETFs like the WisdomTree Artificial Intelligence and innovation Fund (WTAI ). The $203.1 million fund, which turned three years old last month, is pertinent in the AI leadership expansion equation. That’s because it’s diverse versus traditional cap-weighted technology funds. For example, the largest weight assigned to any of the ETF’s 76 holdings is just 3.34%.
WTAI’s relative diversification could indicate that as more AI-related stocks get in on the party largely started by Nvidia, the ETF could rally.If more stocks contribute to AI gains, some market participants might be apt to forgo stock-picking while embracing broader strategies such as WTAI.
Artificial Intelligence ETF WTAI Could Shine in 2025
Recent earnings reports by producers of GPUs and high-bandwidth memory chips indicate the broadening of bullish AI equity participation is already occurring. And some WTAI member firms are benefiting.
“Companies like Credo Technology (+47.9% following its earnings [announcement). And] Marvell (23.2%) posted stellar results due to their capacity to deliver high-speed connectivity solutions for data centers. Broadcom (24.4%), the designer of Google’s tensor processing unit, also had strong [earnings. They were driven] by its networking capabilities,” according to WisdomTree research.
Broadcom is WTAI’s largest holding. Marvell Technology (MRVL) and Credo Technology (CRDO) combine for about 4% of the ETF’s portfolio.
Regarding AI broadening, that’s happening at the application level. And that means more adopters are finding use in the still young technology. That’s crucial to the longer-ranging artificial intelligence investment thesis. That indicates it’s positive that companies in financial services, healthcare, and cybersecurity, among others, are finding use for AI services and technology purveyed by WTAI holdings.
“The AI ecosystem is approaching an inflection point. What began as a hardware-driven story is now transforming into a broader narrative, encompassing software integration, next-generation infrastructure and beyond,” added WisdomTree. “Investors who understand how these elements fit together will be better positioned to capture the AI investment theme. The future of AI is vast, and as adoption scales, value will be created across the entire ecosystem—from hardware providers to end users.”
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