The stock market usually has a very short memory, but right now, everyone’s obsessed with the same thing they were two years ago: Artificial Intelligence. You’ve probably seen Dan Ives on CNBC or Bloomberg, rocking a neon tie and talking about the "AI Revolution" like it’s a 1980s rock concert. He’s the Managing Director at Wedbush Securities and basically the most vocal AI bull on the planet. For a long time, if you wanted to follow his "Golden Playbook" for tech, you had to manually buy the individual stocks he shouted about. Not anymore.
Enter the Dan Ives AI ETF.
Officially known as the Dan Ives Wedbush AI Revolution ETF (ticker: IVES), this fund finally hit the market on June 3, 2025. It didn't just trickle out; it exploded. By October of that same year, it had already crossed the $1 billion mark in assets under management. That’s a massive amount of cash flowing into a thematic fund in just five months. Honestly, it shows just how much retail investors trust Ives’ "AI 30" research reports. But here's the thing: most people think this is just another way to buy Nvidia. They're wrong.
The Reality Behind the Dan Ives AI ETF Strategy
If you're looking for a broad, safe index fund, this isn't it. The Dan Ives AI ETF is what's known as a non-diversified, high-conviction play. It tracks the Solactive Wedbush Artificial Intelligence Index, which is basically a mathematical mirror of Ives' top 30 picks in the space. While most AI funds are just a "who's who" of the S&P 500 tech sector, IVES focuses on what Dan calls the "monetization phase."
We aren't just in the chip-making phase anymore. We're in the software and "derivative" phase.
The portfolio is concentrated. Very concentrated. As of early 2026, the top 10 holdings make up nearly 50% of the entire fund. If those ten companies have a bad week, the whole ETF feels it. It's a "go big or go home" approach that reflects Ives’ belief that the AI boom is in the "second or third inning" of a very long game.
What’s actually inside the ticker?
You might expect the list to start and end with the "Mag 7," but the weighting is surprisingly balanced toward infrastructure and software.
- Taiwan Semiconductor (TSM): Often the top holding, usually sitting around 5% of the total fund. It makes sense—nothing moves without TSM.
- Micron (MU): A heavy hitter here because AI needs memory as much as it needs processing power.
- Alphabet (GOOGL) & Amazon (AMZN): These "hyperscalers" are the backbone of the cloud where AI lives.
- NVIDIA (NVDA): Obviously it's there, but it's not the 20% behemoth it is in some other tech-heavy funds.
- The "Underdogs": You’ll find names like Palantir (PLTR), CrowdStrike (CRWD), and even some unconventional picks like GE Vernova (GEV), which deals with the massive power demands AI centers put on the grid.
Why This ETF Actually Matters for Your Portfolio
Most investors are terrible at timing the "AI trade." They buy when the hype is at a fever pitch and sell the moment there’s a 10% dip. The Dan Ives AI ETF is designed to take the guesswork out of that by following a managed strategy that rebalances semi-annually based on Wedbush’s proprietary research.
It’s about the "use case" era.
Ives has been pounding the table on the idea that 2026 is the "inflection point" year. This is the year where companies stop just talking about AI and start showing actual revenue from it. If you believe his thesis, then having an ETF that shifts its weight toward the companies actually cashing the checks—not just the ones building the tools—is a huge advantage.
However, let's talk about the "cost of admission."
The expense ratio for IVES is 0.75%. In a world where you can buy a Vanguard total market fund for 0.03%, that feels expensive. Kinda pricey, right? You’re paying a premium for Dan Ives’ brain and the Wedbush research machine. If the fund outperforms the Nasdaq by a significant margin, nobody will care about the fee. But if it tracks sideways, that 0.75% will start to feel like a heavy anchor.
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The Risks Nobody Mentions at the Cocktail Party
Everyone loves to talk about the gains. They don't like to talk about the "drawdown." Because the Dan Ives AI ETF is so concentrated (only about 30-31 holdings), it is incredibly volatile. If the Department of Justice decides to go after Big Tech for antitrust again, or if there’s a hiccup in the Taiwan Strait, this ETF is going to get hit harder than a diversified tech fund.
There's also the "Brand Risk."
This fund is uniquely tied to one man's reputation. If Dan Ives suddenly changes his tune or leaves the industry, the "magic" of the ETF might evaporate for many investors. It’s an "analyst-driven" fund, which is a bit of a rare breed in the ETF world. You aren't just betting on AI; you're betting on Dan Ives being right about AI.
Comparing IVES to the Competition
How does it stack up against the "old guard" of AI funds?
- WISE (Themes Generative AI ETF): This one is way cheaper with a 0.35% expense ratio. But it’s more "passive." It doesn’t have the active research tilt that IVES claims to have.
- BOTZ (Global X Robotics & AI): This fund is more about the physical "bots." IVES is much more focused on the software, data, and cloud infrastructure side of the equation.
- The QQQ: Honestly, if you just want general tech exposure, the QQQ is the standard. But it’s "diluted" with non-AI companies. IVES is the "pure play" version for those who want to be 100% focused on the revolution.
How to Handle an Investment in IVES
If you’re thinking about jumping in, don’t make this your entire retirement plan. It’s a "satellite" holding. Most experts recommend keeping thematic bets like this to 5% or 10% of your total portfolio. It's the "spice" in the soup, not the broth.
Keep an eye on the rebalancing dates.
Since the fund follows the "AI 30" report, which usually updates twice a year, those are the moments when the fund might dump a former "darling" and pick up a new, obscure player. Watching these shifts can actually give you a good idea of where the "smart money" is moving within the tech sector.
Actionable Next Steps for Investors
Before you hit the "buy" button on your brokerage app, do these three things:
Check your current "overlap." If you already own a lot of Nvidia, Microsoft, and Apple, buying the Dan Ives AI ETF might just be doubling down on the same stocks you already have. Use an online "ETF overlap" tool to see if you’re actually diversifying or just concentrating your risk.
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Understand the "valuation." The P/E ratio for this ETF is high—often over 50x. You are paying for future earnings. Make sure your time horizon is at least 3 to 5 years. This is not a "get rich by next Tuesday" play.
Decide on your "exit strategy." Set a price target or a stop-loss. In the high-octane world of AI investing, having a plan for when to take profits is just as important as knowing when to get in. If the fund hits a 25% gain, are you selling half? Knowing this now saves you from emotional trading later.