Looking to Invest in the AI Value Chain? Meet the AIVC ETF

How AIVC ETF Works

The Amplify Bloomberg AI Value Chain ETF

is the result of name, fee, and strategy changes to the Amplify Global Cloud Technology ETF

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. AIVC invests in key companies driving the AI revolution, focusing on leaders in cloud computing, semiconductors, and hardware—core technologies behind AI advancements. By tracking the Bloomberg AI Value Chain Index, the fund takes a passive approach, offering balanced exposure to these crucial sectors.

With its equal-weighted methodology, AIVC ensures that no single company dominates the portfolio, providing investors with a diversified and risk-managed way to invest in the future of AI.

The index universe starts with companies that meet strict criteria, including a minimum market capitalization of $500 million and an average daily trading volume of at least $5 million over 90 days. This ensures the fund is investing in liquid, well-established companies.

The list is then narrowed down to those firms deeply embedded in AI and cloud ecosystems, selecting the top 45 based on their relevance to AI. These companies are rebalanced quarterly to keep the index aligned with current market trends.

AIVC ETF Exposure

As of October 22, 2024, the Amplify Bloomberg AI Value Chain ETF

has its largest country exposure in the United States, which accounts for 75% of its holdings. Taiwan follows with 9.4%, South Korea with 4.4%, China with 4.2%, and Japan with 2.5%. In terms of industry exposure, the fund is well-diversified, with nearly a third allocated to the software and services sector (31%), followed by technology hardware and equipment (31.4%), and semiconductors (29%).

According to the fund’s prospectus, AIVC is classified as a diversified company under the Investment Company Act of 1940 (75-5-10 diversification). Hence, the fund invests at least 75% of its assets across multiple securities, ensuring that no more than 5% is allocated to any single issuer and no more than 10% ownership of any issuer’s voting securities.

Notable companies in its top holdings include Super Micro Computer, Advantest Corporation, Nvidia, Atlassian, Marvell Technology, Quanta Computer, and Gitlab. Additionally, over 86% of the fund’s holdings are in large-cap companies with market capitalizations exceeding $10 billion, offering strong exposure to leading companies in the AI value chain.

Why Investors Should Consider AIVC

If you're looking to ride the wave of artificial intelligence's massive potential, AIVC is a fund that stands out. It offers direct access to the companies at the cutting edge of AI—whether it's semiconductor giants, cloud innovators, or hardware pioneers. As the AI market gears up for explosive growth, projected to soar from $638 billion in 2024 to $3.6 trillion by 2034, AIVC positions you right in the center of this transformation.

Backed by Bloomberg Intelligence’s in-depth research, this ETF blends expert insights with a smartly diversified strategy, giving you a chance to invest in the key players shaping the future of AI. For investors seeking both growth and exposure to groundbreaking technology, AIVC is a compelling option at an expense ratio of 0.56%.

Finding the Best AI ETFs

According to ETF Central data, there are 14 ETFs in the AI & Big Data segment, which have delivered an aggregated performance of over 15% year-to-date (YTD). To get a clearer picture of how Amplify’s newly launched AIVC stacks up, investors should dive deeper into these funds using the ETF compare tool.

When comparing ETFs, key factors to consider include expense ratios, sector and geographic exposure, concentration, fund size, and management strategy, among other elements. These aspects help determine which fund aligns best with your investment goals and risk tolerance.

Since AIVC is newly launched, size and performance may not be the most relevant metric to focus on at the moment. Instead, investors should evaluate its methodology, underlying index, and targeted sectors.

Here are two recent examples on how to compare two ETFs:

• ETF Comparison: Schwab U.S. Dividend Equity ETF (SCHD) Versus Vanguard Dividend Appreciation ETF (VIG)
• ETF Comparison: SPDR S&P 500 ETF Trust (SPY) Versus Invesco S&P 500 Equal Weight ETF (RSP)

About Amplify ETFs

Amplify ETFs, managed by Amplify Investments, oversees more than $9.8 billion in assets across its range of ETFs (as of 09/30/2024). Offering a diverse set of investment options, Amplify’s ETFs cater to investors looking for growth, income, and risk-managed strategies through both actively managed and index-based funds.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.