On Wednesday, Wedbush Fund Advisors unveiled the Dan Ives Wedbush AI Revolution ETF (IVES).
IVES looks to offer long-term returns through a concentrated portfolio of AI companies. The fund has a net expense ratio of 75 basis points.
As the fund’s name and ticker implies, IVES is designed to tap into the research strategies of Dan Ives, Wedbush Securities Managing Director and Global Head of Technology Research. Ives has built a storied career as a Wall Street analyst, especially when it comes to evaluating the tech sector.
“We’re incredibly excited to bring Dan Ives’ research on the AI Revolution to life through this ETF,” noted Cullen Rogers, Chief Investment Officer of Wedbush Fund Advisers. “It’s a response to what investors have been asking for—direct, meaningful exposure to the companies powering the next major economic transformation: artificial intelligence.”
Leveraging Ives' Expertise
IVES leverages Dan Ives’ research framework to drill down on the top 30 companies that are driving growth and innovation across the AI industry. The overall portfolio consists of companies involved in AI software development, cloud infrastructure, semiconductors, and other essential technology hardware.
The fund’s framework uses a variety of methods to ascertain a company’s exposure to the AI sector. These methods include proprietary software analysis, along with evaluating company filings and other key documents.
One crucial factor specifically working in favor of IVES is its approach to portfolio balance. The fund uses a tactical methodology to accordingly weigh each asset within its portfolio. For instance, the fund’s largest companies, Microsoft, Nvidia, and Broadcom, each account for less than 6% of the overall portfolio weight.
This balanced approach allows IVES to capitalize on rallies in the AI sector while mitigating risk if an individual company overperforms. Given the rising demand for portfolio diversification these days, IVES can thus offer a less top-heavy take on gaining AI exposure.
“AI is the most transformational force in the global economy in our lifetime,” added Gary Wedbush, President and Chief Executive Officer of Wedbush Securities. “Dan’s track record speaks for itself. He’s been identifying the drivers of tech disruption for years, and the IVES ETF gives investors a chance to follow that insight in a disciplined, transparent way. We are proud to offer investors exposure to the AI Revolution through the IVES ETF.”
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