Here's a common misconception: You need an enormous amount of cash to invest in artificial intelligence (AI) stocks. This idea might circulate here and there due to the explosive performance of many AI players, pushing their stock prices into the hundreds and even thousands of dollars in recent years.
But the fact is, you can invest in not only one but an entire collection of the world's top AI players with less than $100 right now. And you don't even have to be an expert in the field to do this. Instead, you can rely on the knowledge of someone who has been studying the industry for years. His name is Dan Ives, and he's a managing director and senior equity research analyst covering technology at Wedbush.
Last June, Wedbush launched the Dan Ives Wedbush AI Revolution ETF (IVES +0.03%), an exchange-traded fund incorporating the top analyst's favorite AI players. Considering Ives' expertise in the field, this is the best AI ETF to invest $100 in right now. Let's find out more.
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About ETFs
First, though, a bit about ETFs in case you aren't too familiar with them. These instruments allow you to instantly invest in a large number of companies at once, according to a particular theme -- this may be a sector, a technology, an investing style, or certain ETFs may be designed to track a major index such as the S&P 500. In any case, these investments offer you exposure to many companies, and this translates into diversification. I love diversification because it brings investors an element of security -- if one stock or industry suffers, your investment in others could compensate.
Investing in ETFs is simple, much like buying or selling a stock, as they trade daily on the market just like stocks. All of this means, if you're a stock investor, you may easily integrate ETFs into your investing strategy and routine.
ETF investment also allows you to invest in industries you might not know too well. Managers of the funds have done the heavy lifting, selecting leading players within that particular field or theme, so you don't have to do it yourself.
And this brings me to the subject of the Ives ETF. The fund selects stocks based on Ives' research to offer you exposure to companies that will benefit throughout the AI spending cycle. This includes players across industries, from those offering AI infrastructure to those implementing the technology.
NYSEMKT: IVES
Key Data Points
A big position in TSMC
Today, the most heavily weighted stock in the fund is Taiwan Semiconductor Manufacturing, the leading manufacturer of the AI chips of major players in AI, from Nvidia to Advanced Micro Devices. TSMC holds a weighting of just over 5%. It's followed by Micron Technology, Amazon, and Nvidia.
In a September update, the fund made additions, including cybersecurity giant CrowdStrike and AI cloud services company Nebius Group.
"The AI Revolution is no longer just about chips and cloud," the Wedbush research team wrote in the update. "Security, consumer platforms, and power infrastructure are now in focus."
This ETF makes a top buy today for a few reasons. First, trading for about $33 a share, it's within reach for many investors -- you can invest in a few shares with just $100. Second, it's based on the research of a leading analyst in the field, and the research team is updating the composition of the ETF according to the latest developments in the market. So, as we see in the recent update, as Ives saw the growing potential of cybersecurity companies within the AI space, the team added a leading player to the fund.
Investing in this ETF also offers you exposure to a wide variety of companies involved in AI, broadening your opportunity to score a win. Many retail investors may not have the cash to invest in dozens of AI companies and construct a balanced portfolio across other stocks and industries at the same time. The Ives fund makes this possible.
All of this means that, as the AI boom marches on, the Ives fund may be the best AI ETF to invest $100 in right now.
