Artificial intelligence (AI) stocks have skyrocketed over the past couple of years as it became more evident that this top technology could revolutionize everything from how a warehouse operates to how scientists discover drugs. The market is set to reach into the trillions of dollars a few years from now, and certain AI companies already have started to reap the rewards -- those selling AI tools and those applying AI to become more efficient or reach new goals. For example, chip designer Nvidia's revenue has soared in the double digits quarter after quarter, and e-commerce and cloud company Amazon has generated billions in revenue thanks to its AI investments.
You may want to get in on this exciting AI story, but it's very difficult to choose just one or two potential winners. The good news is: You don't have to. If you buy shares of an AI exchange-traded fund, you can invest in the best of the bunch with one simple purchase. And the top one to buy right now with $100 is a recently created ETF -- one that's built around the research of one of today's most highly regarded technology analysts. Let's check it out.
Image source: Getty Images.
A note about ETFs
Before diving in, though, a quick note about ETFs. They trade daily on the market just like stocks so even if you haven't invested in them before, it's easy to get started. The only big difference between buying a stock and an ETF is these funds come with fees, expressed as expense ratios. If the expense ratio is less than 1%, you're good to go -- fees won't eat into your returns. This particular fund I'm about to discuss has an expense ratio of 0.75%, so it fits our criteria.
And one more point about index funds: They allow you to instantly diversify, which is particularly important in an area involving a newish technology. This limits risk because if one stock declines, others are around to compensate.
Now, let's turn to this new fund that offers you the opportunity to immediately and easily invest in 30 fantastic AI players. Wedbush launched the Dan Ives Wedbush AI Revolution ETF (IVES +0.24%) early this month, building it around the research of top Wedbush tech analyst, Dan Ives. You may be familiar with Ives as he speaks regularly across traditional and social media about a variety of tech stocks -- including AI players.
Ives is bullish on the industry and many of its leaders and has constructed an analysis to identify companies that may gain throughout the AI spending cycle. Wedbush has chosen these players for the ETF. They span areas from the building of infrastructure to the actual application of AI to real-world problems -- allowing investors to benefit from each phase of growth. The fund includes chip designers, cloud service providers, software companies, internet players, and more.
AI's biggest names
AI giants such as Microsoft, Nvidia, and Broadcom hold the three top spots in the Ives fund, with weightings of about 5% or more, so you'll get exposure to the biggest AI names when you invest here. But, importantly, Ives' research offers you access to other companies that may not have been the first on your radar screen, such as ServiceNow -- a cloud platform for automated workflow management -- and Oklo, a nuclear energy company powering data centers.
NYSE: OKLO
Key Data Points
The Ives fund is the best bet right now because it offers you the opportunity to benefit from Dan Ives' extensive research and invest in companies positioned to win in this high-growth industry. And you can easily scoop up a few shares of this fund with $100 since it trades for about $25 right now.
Of course, you still could and should look for and invest in individual stocks that are well positioned to win in this AI revolution -- but, to get broad and balanced exposure to the industry, an ETF is a great asset to add to your holdings. And the Ives fund, built on years of research and expertise, is a fantastic one to buy and hold to potentially win from this game-changing growth story.
