Dan IVES Wedbush AI Revolution ETF (IVES) Deep Dive

IVES: the basics

A common question with new ETFs, especially those not carrying a Vanguard, iShares, Schwab, SPDR, or Invesco label, is whether they’re built to last. With IVES, those fears should be put to rest. At $664 million in assets under management, it’s well above the $50 million threshold often seen as the minimum for long-term viability.

On the surface, IVES

looks like a standard thematic ETF. It charges a 0.75% expense ratio, which is pricey but not unusual for this segment. What stands out is the fund’s traction. According to ETF Central, IVES saw $90 million in net inflows over the five trading days ending September 17 and $130 million over the past month.

Liquidity has been excellent, with a 30-day median bid-ask spread of just 0.048%. Authorized participants have also kept the fund’s trading price closely aligned with NAV, with an average 30-day premium/discount of +0.07%.

These metrics matter because they show the ETF is running smoothly. Strong asset growth ensures viability, tight spreads keep trading costs low, and stable NAV alignment confirms the creation-redemption process is working properly.

In the case of IVES, everything appears to be executed well, suggesting the fund is operationally sound rather than “wonky” like some newer niche products.

IVES: the basket

Contrary to what some might assume, IVES

is not an actively managed stock-picking vehicle where Dan Ives himself is making discretionary calls.

Instead, Wedbush partnered with Solactive, well known for building custom benchmarks, to create the bespoke Solactive Wedbush Artificial Intelligence Index. I like this setup because it gives investors and analysts a transparent, rules-based framework for how the portfolio is built, rather than the “black box” approach typical of active management.

The index universe starts with U.S.-listed equities (plus ADRs) that meet liquidity and size requirements. To qualify, companies must have at least $250 million in free float market cap and $1.5 million in average daily trading volume. Importantly, they also need to be included in the “Dan Ives AI 30” research list, which acts as a thematic filter.

From there, Solactive’s ARTIS natural language processing system screens company filings and public sources for AI relevance. Only firms deriving at least 50% of revenue from AI-related business fields, like semiconductors, cloud infrastructure, AI software, networking, or hardware, make the cut.

Weighting is also rules-based but designed to prevent overconcentration. Companies are weighted by a capped, adjusted market-cap formula that sets a minimum of 1% and a maximum of 4% per holding. Additional constraints limit the combined weight of the largest stocks, ensuring the index doesn’t become top-heavy in just a handful of mega-caps.

The end result is a concentrated basket of fewer than 50 stocks. Unlike many AI ETFs that simply buy the entire tech sector, IVES is selective, with only 23% overlap by weight with the Nasdaq 100 and just 15 names in common. That gives it a higher active share and more differentiated exposure.

At the same time, IVES hasn’t missed the key drivers of AI. The fund holds the mega-cap growth stocks pouring billions into AI capex—companies like Oracle, Broadcom, Alphabet, Nvidia, and Apple, but weights them differently than broad benchmarks.

It also ventures beyond U.S. borders with names like Taiwan Semiconductor, Alibaba, and Baidu, which broad U.S.-only AI ETFs typically exclude. This balance between established leaders and out-of-benchmark exposures is part of what has helped IVES stand out in a crowded field.

IVES: my thoughts

From an industry analyst perspective, Wedbush did everything right in launching an ETF tied so closely to the reputation and calls of Dan Ives. Despite the firm’s backing, make no mistake: this product lives and dies on Ives’s ability to sell the strategy.

So far, he has delivered. The trading volume and pace of industry engagement have been impressive, with constant appearances on CNBC and Bloomberg, presence at NYSE events, and participation in conferences. Dan has been relentless in promoting the ETF, and it shows in the asset growth.

Looking at the ETF construction itself, there are positives and negatives. On the plus side, I appreciate the partnership with Solactive to create a customized index with clear, rules-based criteria. It ensures transparency and avoids the closet-indexing problem that plagues many thematic ETFs.

The portfolio also meaningfully diverges from the Nasdaq 100, both in stock selection and weightings, which is critical for differentiation. On the downside, the 0.75% expense ratio feels high. To stay competitive in the crowded AI ETF niche, I’d like to see that lowered to around 0.60%.

As for performance, it’s still too early to make strong calls. Returns will be tied directly to AI capex spending and, at a macro level, the benefit of the recent 25 basis point rate cut. Expect IVES to remain volatile, particularly around quarterly earnings from the mega-cap tech names that dominate its portfolio. Investors should be prepared for sharp moves both up and down.

Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.