Should You Consider the Dan Ives AI-Focused ETF? Here's the Real Story Behind IVES

A veteran Wall Street technology analyst has just entered the ETF game, and it’s turning heads. Dan Ives, known for calling major tech trends correctly over two decades, rolled out the Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES), a new vehicle for investors seeking concentrated exposure to companies powering the artificial intelligence boom.

The timing is intriguing. With AI stocks near record highs and market sentiment leaning bullish, this passive fund tracks 30 carefully selected companies riding the AI wave. But does launching an ETF actually translate into solid returns? And more importantly—should your portfolio include it?

The Fund’s Foundation: More Than Just Another AI ETF

Unlike the countless AI-focused funds flooding the market, this ETF is built on a specific methodology. It draws from a semi-annual research report identifying companies at the forefront of AI development, covering everything from software makers to chip manufacturers to cloud infrastructure providers.

The selection criteria are rigorous:

• Minimum market capitalization of $250 million
• Listed on major U.S. exchanges
• At least 50% of revenue tied to AI-related operations
• Strong trading liquidity

The fund uses modified market-cap weighting with a 4% cap on individual holdings and quarterly rebalancing. This structure aims to balance exposure between heavyweight AI leaders and emerging innovators—a positioning that differs from broader tech ETF offerings.

The Portfolio: Heavyweight Leaders Mixed With Emerging Players

The top five holdings tell part of the story: Microsoft, Nvidia, Oracle, Broadcom, and Taiwan Semiconductor Manufacturing make up roughly 25% of the fund. These are the established pillars of the AI infrastructure boom.

But the fund doesn’t stop there. Smaller AI-focused companies round out the portfolio, creating exposure across the full AI ecosystem—from semiconductor specialists to software platforms to services providers. This blend creates a distinct risk-return profile compared to standard large-cap tech funds.

Early Performance: Beating the Broader Tech Index

Since inception in early June, the IVES ETF has returned 3.4% through mid-June—outpacing the 1% gain in major tech-heavy indices during the same period. That early outperformance is noteworthy, though a few weeks hardly constitute a meaningful track record.

The fund carries a 0.75% expense ratio, higher than many low-cost alternatives but justified by its specialized focus and active research component backing the stock selection process.

The Long-Term Case

Whether this strategy proves durable depends on several factors: how effectively the AI 30 thesis captures the real drivers of AI value creation, how market conditions evolve across different economic cycles, and whether concentrated exposure to this thematic index outweighs the risks of concentration.

For investors seeking AI exposure without the headache of individual stock picking, the IVES ETF offers a structured approach. It works best as a tactical complement to a diversified portfolio rather than a core holding.

The AI opportunity remains substantial—estimates peg the addressable market at $2 trillion with significant runway ahead. Whether this particular fund captures that opportunity effectively will require years of performance data across various market conditions to validate.

For now, the fund represents an interesting option for those bullish on AI’s transformative potential and willing to accept the concentrated positioning that comes with it. The real test begins after the market cycle turns.