Exchange-traded funds (ETFs) can be excellent tools for investing around key themes like artificial intelligence (AI) without the burden of having to pick the right AI-winning stocks among the wide assortment of choices.
The AI boom continues to show tremendous long-term return potential for investors. The IDC projects AI to boost the global economy by $20 trillion by 2030. Investors can see this playing out by just looking at the strong growth leading companies are reporting across semiconductors, software, and cloud computing, but there's more growth on the way from leaders in robotics and autonomous vehicles.
Here are two ETFs that can help you profit from this generational investment opportunity.
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1. Dan Ives Wedbush AI Revolution ETF
Dan Ives is a highly regarded tech analyst on Wall Street. He is currently the managing director and senior equity research analyst covering the tech sector at Wedbush Securities. The Dan Ives Wedbush AI Revolution ETF (IVES +1.21%) tracks the performance of 30 handpicked companies from Ives' coverage universe -- all of which are competitively positioned to benefit from the global transformation of AI.
The top holding as of June 10, 2025, was Microsoft at 5.65% of the fund. This is followed by Nvidia (5.34%), Broadcom (4.82%), and Taiwan Semiconductor Manufacturing (4.77%). A few of the smaller holdings are MongoDB (1.52%) and Soundhound AI (0.95%).
The ETF provides a nice mixture of large established companies like Microsoft and Nvidia, while providing investors the chance to benefit from the explosive growth potential of smaller AI companies like Soundhound AI, a leader in voice recognition technology. This fund provides broad diversification across leaders in cloud computing, cybersecurity, robotics, electric cars, software, and semiconductors. The holdings are weighted using a formula that takes into account each company's market cap. Larger companies by market cap are weighted higher as a percentage of the fund's assets, while smaller companies are weighted less, which helps minimize risk.
NYSEMKT: IVES
Key Data Points
Keep in mind, this is a new fund that just started trading in June. It's also the first ETF launched by Wedbush. Given its limited operating history, it might be wise to start with a small allocation if you decide to invest. Wedbush is a reputable Wall Street firm, and this ETF has a promising list of holdings. But investors may want to see how this fund executes its objective before committing a lot of money to it.
Be aware, too, that the fund's expense ratio is on the high side for an ETF at 0.75%. This comes to about $7.50 in annual expenses for every $1,000 invested in the fund. But that's not much, considering the exposure you gain to high-growth companies with attractive return potential.
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2. Roundhill Magnificent Seven ETF
The Roundhill Magnificent Seven ETF (MAGS +0.40%) tracks the performance of the elite group of tech stocks known as the "Magnificent Seven." All the companies included in the Dan Ives ETF are also included in the Wedbush AI Revolution ETF, so investors may want to buy only one or the other, but it doesn't hurt to own both.
The Magnificent Seven are some of the largest companies by market cap and include the following:
- Apple
- Alphabet (Google)
- Amazon
- Meta Platforms (Facebook)
- Tesla
- Microsoft
- Nvidia
NYSEMKT: MAGS
Key Data Points
The fund rebalances every quarter to maintain an equal weighting for each holding. The consensus estimate on Wall Street projects these companies' annualized earnings growth to range from 10% (Apple) to 29% (Nvidia).
Given those estimates, an investor who dollar-cost averages into this ETF over time can expect to earn returns consistent with the group's future earnings growth. Their expected earnings growth could be enough to outperform the S&P 500, which has historically returned about 10% over the last several decades.
One thing to note about the Roundhill ETF is that rebalancing the holdings every quarter has its pros and cons. While this maintains consistent exposure to the holdings in the fund, the downside is that investors miss out on the upside if one of the stocks significantly outperforms the rest over the long term.
However, this is an excellent ETF to invest in the most dominant technology companies in one transaction without managing separate stock holdings in your portfolio. It also offers a low expense ratio of 0.29%, representing an annual expense of just $2.90 for every $1,000 invested.
As a group, the Magnificent Seven have a combined market cap of $17 trillion, $2 trillion in annual revenue, and $395 billion in free cash flow. If you think of this group as one business, it is a no-brainer investment for the long term.
