xETFs Launches NECK to Focus on the Physical Bottlenecks Behind the AI Buildout

What NECK Targets

NECK invests in companies across four core areas: Memory; Optics, Photonics & Networking; Power & Infrastructure; and Semiconductors & Compute. The fund also leaves room for exposure to bottlenecks that may emerge as the AI landscape evolves.

“As powerful as AI has become and as great as its promise still may be, the AI buildout can only move as fast as its scarcest inputs allow,” said Johnny Wu, Co-founder and CEO of xETFs. “When demand outpaces supply, the companies at the most critical points of constraint in the supply chain can see growing backlogs, increased pricing power, and consistent revenue as they look ahead. With NECK, we are looking beyond the most visible names in AI and targeting companies positioned at the physical and technological bottlenecks limiting the AI buildout.”

How Companies Are Selected

xETFs evaluates prospective holdings on supply and demand dynamics, durability and barriers to entry, economic materiality and pricing power, and valuation. The underlying thesis is that companies sitting at genuine constraint points, rather than simply riding the AI theme broadly, are better positioned to see backlogs grow and pricing hold.

Why Active Management

Wu pointed to how quickly the bottleneck landscape can shift as the reason for building NECK as an actively managed fund rather than a fixed index product. “This is a fast-moving space, and bottlenecks may emerge, and ease, over time,” he said. “That was why we felt it was essential to make NECK an actively managed ETF and why we are so excited to bring this new fund to market.”

About xETFs

WallStreetX ETFs, Inc. DBA xETFs is a New York-based investment adviser focused on providing access to differentiated investment opportunities through ETFs. Built by derivatives and ETF specialists with decades of institutional experience, the firm develops ETFs that seek to generate income, manage volatility, unlock new sources of return, and are available in a simple, accessible format for modern investors. xETFs was founded by industry veterans Johnny Wu, Kenneth Wong, and Lisa Donohoe, whose experience spans derivatives structuring, ETF innovation, investment banking, and asset management at firms including Barclays, BlackRock, and Merrill Lynch.

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. ETF Central is compensated by xETFs to promote the Fund. This compensation creates a potential conflict of interest. Foreside Fund Services, LLC is not affiliated with or endorsed by xETFs, Exchange Traded Concepts, or ETF Central. Exchange Traded Concepts, LLC serves as the investment adviser. WallStreetX ETFs, Inc. dba xETFs serves as the sub-adviser. The Funds are distributed by Foreside Fund Services, LLC., which is not affiliated with xETFs, Exchange Traded Concepts, LLC, or any of its affiliates. To learn more about the Fund’s risks, expenses and holdings, or to view a prospectus, visit www.xetfs.com/NECK.