If you watch financial news programs such as CNBC or Bloomberg, chances are you're familiar with a technology analyst named Dan Ives. Ives is a managing director and global head of technology research at Wedbush Securities.
Over the last few years, he has rose to prominence due to his coverage of several hot themes fueling the next chapter of the technology industry: artificial intelligence (AI), cybersecurity, data analytics, autonomous driving, and more.
Below, I'm going to dig into the Dan IVES Wedbush AI Revolution ETF (IVES 0.93%) and explain why it's my top exchange-traded fund opportunity over the next decade.
What is in the Dan IVES Wedbush AI Revolution ETF?
If you're unfamiliar with ETFs, you can think of them as a basket of stocks. Many ETFs revolve around a specific theme, such as AI or dividend stocks.
Given Ives spends his time researching technology businesses, it's not surprising to learn that tech is the theme of his ETF. Per the fund's documentation, the Dan IVES Wedbush AI Revolution ETF holds positions in each of the "Magnificent Seven" stocks as well as emerging opportunities such as Broadcom, Taiwan Semiconductor Manufacturing, Oracle, Palantir, ServiceNow, Advanced Micro Devices, Salesforce, and International Business Machines.
By owning the Dan IVES Wedbush AI Revolution ETF, investors gain exposure to megacap technology stocks, leading semiconductor opportunities, infrastructure services players, cloud computing, enterprise software businesses, and even quantum computing.
Not only does this provide investors with a fair level of diversified holdings, but it also allows investors to gain passive exposure to many companies leading the AI revolution without chasing momentum and paying a premium.
Image source: Getty Images.
Why do I like this ETF over other technology-focused funds?
When it comes to technology-focused ETFs, my guess is your mind races right to the Invesco QQQ Trust or any one of Cathie Wood's ETFs over at Ark Invest. While investing in those funds has merit, I think the Dan IVES Wedbush AI Revolution ETF has an edge.
First, the Invesco QQQ Trust is focused on tracking the Nasdaq-100 index. The Nasdaq-100 is comprised of the largest non-financial companies trading on the Nasdaq Exchange.
While I'd rather own larger, established players over more speculative opportunities, I think Ives has a good track record when it comes to identifying potential multibaggers early on. For example, Ives was big on Palantir prior to its epic run over the last year. He went as far as to call the company the launchpad of AI use cases over a year ago.
As far as Ark Invest's ETFs are concerned, I think Wood has a tendency to over-index on highly speculative businesses that are not yet fully proven. While investments such as those have outsized potential at times, they are often a bit too risky for my personal investment profile.
Lastly, the Dan IVES Wedbush AI Revolution ETF boasts a reasonable expense ratio of just 0.75%. This means that if you start with an investment of $1,000, you would pay just $7.50 in management fees.
The Dan IVES Wedbush AI Revolution ETF looks positioned for the long haul
To me, the best aspect of the Dan IVES Wedbush AI Revolution ETF is that the fund is comprised of a number of businesses at various stages in their life cycle. I think there is a healthy balance between bluechip stocks and emerging players -- both of which are positioned for further gains as the AI narrative continues to unfold.
Investors with a long-run time horizon who are seeking exposure to different pockets of the AI realm can do so through the Dan IVES Wedbush AI Revolution ETF with relative ease.
