Today, VistaShares launched its first ETF, the VstaShares Artificial Intelligence Supercycle ETF.
The fund operates with a net expense ratio of 0.75%. Its goal is to provide a source of capital appreciation for its investors.
To provide long-term results, AIS constructs a portfolio focused on AI companies from across the globe. Selected assets provide similar results to that of the BITA VistaShares Artificial Intelligence Supercycle Index.
The BITA index uses a rules-based methodology to track the market performance of global AI companies. Companies eligible for inclusion in this index engage in operations that support the growth of AI. This can include the production of semiconductors or the construction of AI applications or data centers.
Thematic AI Strategy
“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,” he added. "It is well past time to fix this problem in thematic investing, and we’re thrilled to be introducing AIS, bringing investors more robust access to these Supercycles for the first time.”
To better track the performance of the BITA index, AIS uses a replication strategy to mirror the index’s investments. However, the portfolio team may instead opt for a representative sampling strategy, should they believe it to be a more advantageous option.
Beyond the Index
The actively managed fund can buy or sell companies outside of the index.
Traditionally, at least 80% of the assets within AIS will be invested in AI companies. The other 20% of net assets could be invested toward emerging companies in the AI space. Alternatively, the fund’s remaining 20% of assets may go toward cash or cash equivalents.
The portfolio for AIS can include a wide variety of companies engaged in the AI space. As such, the fund may invest in companies all across the cap spectrum. Additionally, the ETF may invest in international companies based in either developed or emerging markets.
Artificial intelligence has been an attractive theme for investors to explore in 2024, and 2025 should be no different. As such, investors may wish to use an ETF like AIS to bolster their exposure to this burgeoning technology field.
For more information, please visit VettaFi.com | ETF Trends.
