Latest news with #WedbushAIRevolutionETF
Yahoo
a day ago
- Business
- Yahoo
Famed analysts and investors have been putting their names on ETFs. Here's what it takes for a fund to succeed.
ETF launches continue to surge, with some popular market voices putting their names on funds. Starting an ETF involves significant expenses, including SEC filing and listing fees. Funds need strong performance and substantial assets under management to remain viable. A string of widely followed strategists, economists, and investors have launched exchange-traded funds in recent years. There's famed NYU professor Nouriel Roubini — known colloquially as "Dr. Doom" — and his Atlas America Fund (USAF). Then there's Dan Ives — the tech and AI permabull who can often be found on CNBC wearing fluorescent blazers — who has parlayed his bold analyst calls into the Wedbush AI Revolution ETF (IVES). And let's not forget Fundstrat's Tom Lee — former chief equity strategist at JPMorgan — and his Granny Shots US Large Cap ETF (GRNY). They've stepped into a crowded market with thousands of funds competing for investors' money. A record 723 ETFs came to market in 2024 alone. And they're using their own high-profile personal brands to stand out in a crowded marketplace. But starting a fund is an entirely different beast than keeping one afloat for any sustained amount of time. Yes, strong performance is crucial. But running a fund is expensive, and it takes much more than good returns to ensure success. To start, the cost to launch a fund is hefty. Firms are looking at a $50,000-to-$100,000 filing fee with the SEC, according to Zachary Evans, analyst for passive strategies at Morningstar. puts that number between $100,000 and $500,000. Depending on the type of fund, there also may be an initial listing fee with NYSE or Nasdaq. But the bills don't stop there. Listing fees with the exchange come due every year. With Nasdaq, for example, it's a $4,000 annual fee. Then there's a long list of costs associated with running the fund itself, Evans said. Paying the staff who execute the trades. Paying compliance and a risk-management team. Paying sales and advertising teams to market the fund. Paying rent for your office space. And so on. It all adds up, and it means funds need to amass significant assets under management. ETF providers make money through the annual fees, or expense ratios, they charge investors. So the more money they manage, the more money they're bringing in. Performance also plays a role here — if a fund's value rises by 20% in a year, the fees it extracts will be 20% higher. "This can vary quite a bit, but a baseline number we've heard is that it should cost around $200,000 a year to run an ETF," Evans told BI. "More complicated strategies will cost more, simpler strategies will cost less, or if it's from a large firm that has economies of scale, it might cost less as well." He added: "Say an ETF charges 50 basis points with annual expenses of $200,000 a year. You need $40 million AUM in order to break even on that product." For some funds, there's also pressure associated with seed money. When an ETF launches, Evans said it might have some investors who promise to keep their capital locked up in the fund for a set period of time — say two or three years. Once that period ends, if the investors pull their money, it can be an existential threat to a fund if they haven't pulled in enough money from elsewhere. "Once that seed money dries up, in order for them to endure, they need to make sure they have enough investor interest, enough assets to sustain them," Evans said. Fund closures are increasingly common. Evans said a little more than 200 closed in 2023 — a record — and just under 200 closed in 2024. "As more companies are launching their products, more companies are closing down their products — the vast majority of which have really failed to catch on with investors," Evans said. "They've failed to generate either the performance or, in effect, the asset level to support these products." Read the original article on Business Insider Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Famed analysts and investors have been putting their names on ETFs. Here's what it takes for a fund to succeed.
ETF launches continue to surge, with some popular market voices putting their names on funds. Starting an ETF involves significant expenses, including SEC filing and listing fees. Funds need strong performance and substantial assets under management to remain viable. A string of widely followed strategists, economists, and investors have launched exchange-traded funds in recent years. There's famed NYU professor Nouriel Roubini — known colloquially as "Dr. Doom" — and his Atlas America Fund (USAF). Then there's Dan Ives — the tech and AI permabull who can often be found on CNBC wearing fluorescent blazers — who has parlayed his bold analyst calls into the Wedbush AI Revolution ETF (IVES). And let's not forget Fundstrat's Tom Lee — former chief equity strategist at JPMorgan — and his Granny Shots US Large Cap ETF (GRNY). They've stepped into a crowded market with thousands of funds competing for investors' money. A record 723 ETFs came to market in 2024 alone. And they're using their own high-profile personal brands to stand out in a crowded marketplace. But starting a fund is an entirely different beast than keeping one afloat for any sustained amount of time. Yes, strong performance is crucial. But running a fund is expensive, and it takes much more than good returns to ensure success. To start, the cost to launch a fund is hefty. Firms are looking at a $50,000-to-$100,000 filing fee with the SEC, according to Zachary Evans, analyst for passive strategies at Morningstar. puts that number between $100,000 and $500,000. Depending on the type of fund, there also may be an initial listing fee with NYSE or Nasdaq. But the bills don't stop there. Listing fees with the exchange come due every year. With Nasdaq, for example, it's a $4,000 annual fee. Then there's a long list of costs associated with running the fund itself, Evans said. Paying the staff who execute the trades. Paying compliance and a risk-management team. Paying sales and advertising teams to market the fund. Paying rent for your office space. And so on. It all adds up, and it means funds need to amass significant assets under management. ETF providers make money through the annual fees, or expense ratios, they charge investors. So the more money they manage, the more money they're bringing in. Performance also plays a role here — if a fund's value rises by 20% in a year, the fees it extracts will be 20% higher. "This can vary quite a bit, but a baseline number we've heard is that it should cost around $200,000 a year to run an ETF," Evans told BI. "More complicated strategies will cost more, simpler strategies will cost less, or if it's from a large firm that has economies of scale, it might cost less as well." He added: "Say an ETF charges 50 basis points with annual expenses of $200,000 a year. You need $40 million AUM in order to break even on that product." For some funds, there's also pressure associated with seed money. When an ETF launches, Evans said it might have some investors who promise to keep their capital locked up in the fund for a set period of time — say two or three years. Once that period ends, if the investors pull their money, it can be an existential threat to a fund if they haven't pulled in enough money from elsewhere. "Once that seed money dries up, in order for them to endure, they need to make sure they have enough investor interest, enough assets to sustain them," Evans said. Fund closures are increasingly common. Evans said a little more than 200 closed in 2023 — a record — and just under 200 closed in 2024. "As more companies are launching their products, more companies are closing down their products — the vast majority of which have really failed to catch on with investors," Evans said. "They've failed to generate either the performance or, in effect, the asset level to support these products." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Want Exposure to Nvidia, Microsoft, and Tesla? This New ETF Covers Them All.
A new exchange-traded fund offers investors a way to gain exposure to some of the hottest stocks in the AI market. The new ETF uses proprietary research to evaluate the top AI companies to invest in. Wedbush tech analyst Dan Ives oversees the ETF that bears his name. 10 stocks we like better than Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF › Exchange-traded funds (ETFs) are a great way to gain exposure to the hot field of artificial intelligence (AI). ETFs provide a diversified portfolio of AI stocks while typically charging low fees. A new AI ETF emerged recently, and what makes this one stand out is that it's overseen by Dan Ives, the global head of technology research at Wall Street firm Wedbush Fund Advisors. Naturally, the fund, the Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES), is named after its founder. But just because it sports the name of a well-known stock market analyst doesn't mean the ETF is a buy. Here's a deeper look into this new opportunity to invest in the hot field of artificial intelligence. Ives started his namesake ETF because he's excited about the transformative power artificial intelligence brings to every industry. He told Fox Business, "In 25 years covering tech, I've never seen a bigger theme than the AI revolution." The fund is made up of 30 businesses across a number of industries ranging from semiconductor manufacturing and robotics to cybersecurity and consumer products. What ties these disparate companies together is that each has developed strong AI capabilities in their fields. The Dan Ives Wedbush AI Revolution ETF encompasses many key players in the AI space, including tech stalwarts Microsoft, Tesla, Apple, Palo Alto Networks, and of course, AI darling Nvidia. Some newcomers to the AI arena are also included, such as SoundHound AI and All 30 stocks were handpicked using Ives' proprietary investment framework. Ives intends to actively manage the roster of companies in his ETF, and the plan is to reconfigure and rebalance the stocks quarterly. At the time of this writing, Microsoft has the heaviest weighting in the ETF at 5.65%. Ives described this process to CNBC, saying: It's based on our research. So as new companies come in, then some companies could come out. This is a living organism, in terms of this AI 30. It's not static. And that's a key part of the theme here, because the theme will continue to evolve. While available to all investors, the ETF is aimed at retail investors. Ives explained there's "a heavy focus on retail for all the investors that follow me." The Dan Ives Wedbush AI Revolution ETF charges an annual fee of 0.75%, which is higher than several other AI ETFs. That's not surprising because the fund is actively managed, so investors will be paying $75 annually in fees for every $10,000 invested. In fact, Cullen Rogers, chief investment officer at Wedbush Fund Advisers, told CNBC, "We're kind of walking this line between active and passive." This is actually a strength of Ives' ETF compared to a passively managed fund. The AI industry is dynamic and evolving rapidly. Having Ives and his team researching and staying on top of who the important AI players are across diverse industries is essential to the fund's performance over time. And Ives wasn't modest when he highlighted another reason to invest in his ETF, telling Yahoo! Finance, "There is only one Dan Ives." He elaborated, "There are plenty of other great vehicles out there, but there's only one that encompasses my investing team and the research that investors have trusted me to deliver." Is there enough reason to invest in the Dan Ives Wedbush AI Revolution ETF? It boasts a number of exceptional AI stocks. For example, it includes shares of Facebook parent Meta Platforms, which rose 42%, and Pegasystems, which skyrocketed 78% over the past 12 months. But because the fund is so new, with an inception date of June 3, the ETF lacks a track record to assess how it's performed over time. Some of the veteran companies in the fund, for example, Nvidia, are a solid choice, but others, such as Soundhound, are newer businesses that may not succeed over the long run. So there's risk this ETF can underperform the overall market. If so, you're better off opting for one of the ETFs focused on the S&P 500. Moreover, the method Ives is taking with his fund warrants careful consideration. He told Yahoo! Finance: "I've never been too focused on valuations. It's about the themes, the best places, and the disruptors." To say stock valuation is taking a bit of a back seat is concerning. It's also counter to how investing legend Warren Buffett approaches stocks. As Buffett has famously said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." As a result, before deciding to invest, wait to see how the ETF performs over the next few quarters. This gives you some history to evaluate whether Ives can deliver worthwhile returns in the dynamic, ever-evolving AI industry. Before you buy stock in Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor's total average return is 998% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Robert Izquierdo has positions in Apple, Meta Platforms, Microsoft, Nvidia, Palo Alto Networks, SoundHound AI, and Tesla. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Palo Alto Networks, and Pegasystems and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want Exposure to Nvidia, Microsoft, and Tesla? This New ETF Covers Them All. was originally published by The Motley Fool
Business Insider
a day ago
- Business
- Business Insider
Famed analysts and investors have been putting their names on ETFs. Here's what it takes for a fund to succeed.
A string of widely followed strategists, economists, and investors have launched exchange-traded funds in recent years. There's famed NYU professor Nouriel Roubini — known colloquially as " Dr. Doom" — and his Atlas America Fund (USAF). Then there's Dan Ives — the tech and AI permabull who can often be found on CNBC wearing fluorescent blazers — who has parlayed his bold analyst calls into the Wedbush AI Revolution ETF (IVES). And let's not forget Fundstrat's Tom Lee — former chief equity strategist at JPMorgan — and his Granny Shots US Large Cap ETF (GRNY). They've stepped into a crowded market with thousands of funds competing for investors' money. A record 723 ETFs came to market in 2024 alone. And they're using their own high-profile personal brands to stand out in a crowded marketplace. But starting a fund is an entirely different beast than keeping one afloat for any sustained amount of time. Yes, strong performance is crucial. But running a fund is expensive, and it takes much more than good returns to ensure success. To start, the cost to launch a fund is hefty. Firms are looking at a $50,000-to-$100,000 filing fee with the SEC, according to Zachary Evans, analyst for passive strategies at Morningstar. puts that number between $100,000 and $500,000. Depending on the type of fund, there also may be an initial listing fee with NYSE or Nasdaq. But the bills don't stop there. Listing fees with the exchange come due every year. With Nasdaq, for example, it's a $4,000 annual fee. Then there's a long list of costs associated with running the fund itself, Evans said. Paying the staff who execute the trades. Paying compliance and a risk-management team. Paying sales and advertising teams to market the fund. Paying rent for your office space. And so on. It all adds up, and it means funds need to amass significant assets under management. ETF providers make money through the annual fees, or expense ratios, they charge investors. So the more money they manage, the more money they're bringing in. Performance also plays a role here — if a fund's value rises by 20% in a year, the fees it extracts will be 20% higher. "This can vary quite a bit, but a baseline number we've heard is that it should cost around $200,000 a year to run an ETF," Evans told BI. "More complicated strategies will cost more, simpler strategies will cost less, or if it's from a large firm that has economies of scale, it might cost less as well." He added: "Say an ETF charges 50 basis points with annual expenses of $200,000 a year. You need $40 million AUM in order to break even on that product." For some funds, there's also pressure associated with seed money. When an ETF launches, Evans said it might have some investors who promise to keep their capital locked up in the fund for a set period of time — say two or three years. Once that period ends, if the investors pull their money, it can be an existential threat to a fund if they haven't pulled in enough money from elsewhere. "Once that seed money dries up, in order for them to endure, they need to make sure they have enough investor interest, enough assets to sustain them," Evans said. Fund closures are increasingly common. Evans said a little more than 200 closed in 2023 — a record — and just under 200 closed in 2024. "As more companies are launching their products, more companies are closing down their products — the vast majority of which have really failed to catch on with investors," Evans said. "They've failed to generate either the performance or, in effect, the asset level to support these products."
Yahoo
2 days ago
- Business
- Yahoo
If I Could Only Buy 1 AI ETF for the Next Decade, This Would Be It
Technology-focused ETFs are some of the hottest in the market right now thanks to rising interest in artificial intelligence (AI). While Cathie Wood's various ETFs or the Invesco QQQ Trust garner a lot of attention, I see another fund that's the better buy. The Dan IVES Wedbush AI Revolution ETF provides investors with exposure to AI, cybersecurity, cloud computing, infrastructure services, enterprise software, and so much more. 10 stocks we like better than Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF › 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 (NYSEMKT: IVES) and explain why it's my top exchange-traded fund opportunity over the next decade. 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. 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. 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. Before you buy stock in Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor's total average return is 996% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, International Business Machines, Oracle, Palantir Technologies, Salesforce, ServiceNow, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. If I Could Only Buy 1 AI ETF for the Next Decade, This Would Be It was originally published by The Motley Fool Sign in to access your portfolio
