AI boom sparks new ETF launch by Wedbush and Dan Ives

Wedbush Securities is merging investment research with product innovation by launching an AI-focused ETF based on analyst Dan Ives’ research insights. The new fund, trading under the ticker “IVES,” offers investors direct access to companies Wedbush identifies as leaders in the rapidly expanding artificial intelligence sector. This launch represents a growing trend of Wall Street firms developing investment products that capitalize on AI’s expanding economic footprint beyond semiconductor manufacturers.

The big picture: The Dan Ives Wedbush AI Revolution ETF will track an index of companies from Wedbush’s “Ives AI 30” research list, beginning trading on June 5, 2025.

• The ETF will include major tech companies like Nvidia, Microsoft, Alphabet, Amazon, and Tesla, alongside smaller players such as SoundHound AI and CyberArk Software.
• Though technically a passive investment product, the fund occupies a middle ground between active and passive management by leveraging Ives’ research in an institutional framework.

How it works: The fund will reconfigure its holdings quarterly while allowing for more frequent adjustments in response to corporate actions.

• Cullen Rogers, chief investment officer at Wedbush Fund Advisers, will manage the ETF’s day-to-day operations.
• The fund carries a 0.75% management fee, higher than many thematic ETFs but lower than the average 1% fee for active U.S. equity funds.

Industry context: AI-themed ETFs present unique challenges for fund issuers due to the rapidly evolving nature of the industry.

• Many significant AI players like OpenAI remain private companies, limiting investment options.
• Major public AI beneficiaries like Nvidia are already widely held through various investment vehicles.

Market competition: The Wedbush fund enters a competitive landscape where established AI-themed ETFs have delivered mixed performance results.

• The Global X Artificial Intelligence & Technology ETF (AIQ), with over $3 billion in assets, has gained 22% over the past year—outperforming the S&P 500 but roughly matching Nvidia’s standalone performance.
• Wedbush believes their timing is strategic as the “AI revolution theme is now going from semis to software, to infrastructure, to consumer and the other derivatives,” according to Ives.