How VistaShares' New ETF Taps Into the AI Supercycle

Firstly, What Are Supercycles?

VistaShares defines Supercycles™ as long-term, technology-driven trends that are disrupting current economic models and reshaping industries worldwide. These Supercycles™ are believed to be catalyzing levers for future innovations with the potential to drive massive, lasting impact across the globe.

How VistaShares Artificial Intelligence Supercycle ETF (AIS) Works

VistaShares Artificial Intelligence Supercycle ETF (AIS) invests in global AI companies, aiming to replicate the performance of the BITA VistaShares Artificial Intelligence Supercycle Index while leveraging active management to seize opportunities beyond the Index.

The Index focuses on companies generating over 50% of their revenue from AI-related technologies, such as high-performance semiconductors, AI-enabled datacenters, and cutting-edge applications like virtual assistants and predictive analytics. Guided by the Index's robust rules, AIS also incorporates emerging AI innovators, targeting IPOs or firms demonstrating significant growth potential.

The portfolio manager has the flexibility to adjust holdings based on new data, company outlooks, or industry shifts. With sectoral strength in IT and semiconductors, the Fund captures the transformative potential of AI’s supercycle while maintaining strategic agility.

As of the initial fact sheet (as of Sep.30, 2024) , the fund's primary geographic exposures are the U.S. (64%), Taiwan (14%), China (7.8%), and France (4.4%).

Industry-wise, the fund is heavily invested in semiconductors and semiconductor equipment (48%), followed by electrical equipment (11.4%), tech hardware, storage, and peripherals (10.7%), and communication equipment (9.4%).

As of its inception date, AIS includes 72 holdings, with the top 10 accounting for 45% of the portfolio. These top holdings are:

• Vertiv Holdings (7.22%)
• Taiwan Semiconductor Manufacturing Company (5.22%)
• Commvault Systems Inc. (4.88%)
• Hygon Information Technology (4.68%)
• SK Hynix Inc. (3.78%)
• GlobalFoundries Inc. (3.47%)
• Advanced Micro Devices (3.72%)
• Legrand SA (3.64%)
• Intel Corp. (3.60%)
• Micron Technology (3.54%)

AIS has a total expense ratio of 0.75%.

Why You Should Consider AIS ETF

1) Capitalizing on the AI Revolution

The global artificial intelligence market is poised for explosive growth, with projections suggesting a staggering 300x increase by 2032, fueled by the rapid advancements in generative AI.

2) Investing in the Dawn of AI

As the AI industry is still in its infancy, much of the investment is directed towards foundational infrastructure like data centers and semiconductors. This ETF positions investors to capitalize on these early-stage opportunities.

3) A Global Perspective on AI

The fund's global approach identifies companies worldwide with the potential to become dominant forces in the AI sector. This provides exposure to under-the-radar opportunities that could yield significant returns.

4) Diversification for the Future

By focusing on growth companies that may be overlooked in traditional portfolios, this ETF offers diversification benefits. These companies play a critical role in the AI ecosystem and could drive substantial value creation.

5) A Structured Approach to AI Investing

The actively managed strategy invests across the entire AI supply chain, ensuring comprehensive exposure to key growth areas within the sector. This disciplined approach aims to maximize returns while mitigating risk.

How Artificial Intelligence ETFs Are Doing this Year

Trackinsight data reveals that the 16 AI-focused ETFs available in the U.S. market have delivered an impressive aggregated year-to-date (YTD) performance of 19% as of November 29, 2024. These funds have also drawn significant investor interest, amassing over $1.4 billion in net inflows this year.

About VistaShares

VistaShares specializes in innovative, actively managed ETFs offering Pure Exposure™ to economic Supercycles™, long-term trends driven by disruptive technologies. Founded by industry veterans Jon McNeill and Adam Patti, with expert guidance from Robert Whitelaw and advisors like Sunny Madra and Dave Nadig, VistaShares empowers investors with targeted growth opportunities.

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.