This is an actively managed thematic ETF that invests across the entire artificial intelligence supply chain, from high-performance semiconductors to AI data centers and AI applications. It selects core growth companies at each stage of the supply chain.

It suits growth-oriented investors who want to bet on the long-term growth of AI infrastructure and the semiconductor supply chain and who can tolerate the volatility that comes with thematic concentration.

It is an ETF run by Vistashares using an active management approach.

The fund uses an active thematic strategy, selecting companies at each stage of the supply chain: makers of high-performance semiconductors, companies that build and operate AI data centers, and AI application companies. It identifies the core companies driving AI growth through bill-of-materials-based analysis, and its weighting toward global semiconductor companies is relatively high.

• Active management that selects core companies at each stage of the AI supply chain
• A portfolio concentrated in semiconductors and data center infrastructure

Assets under management (AUM) stand at $1.2B, and the total expense ratio is 0.75% per year.

Unlike broad technology ETFs, it is concentrated in the AI semiconductor and infrastructure supply chain, so both its growth potential and its volatility tend to be high.

The theme as a whole tends to move together with the AI investment cycle and semiconductor demand. The fund tends to be strong when expectations for expanded data center investment run high, but volatility can rise sharply during a semiconductor downturn or a correction in technology stocks.

Money tends to flow into thematic ETFs when expectations for AI infrastructure investment are rising, and because of the heavy weighting in growth stocks, outflows can also come quickly when risk aversion strengthens.

Its strength is that it diversifies across the whole AI supply chain and captures infrastructure growth broadly, while thematic concentration, high fees and volatility are its drawbacks.

BOTZ and ROBT in the table are adjacent in the robotics and AI themes but differ in composition and focus, while GRID, TAN and NASA cover other infrastructure themes such as power grids, solar energy and space. Investors who want a tighter focus on AI semiconductors can also compare the semiconductor ETFs SMH and SOXX, or AIQ, which covers AI broadly. Because differences in holdings and weightings drive performance in thematic ETFs, it is wise to check the portfolio composition as well.

Here are the points to review before investing in AIS. As an actively managed AI thematic ETF, it is important to check in advance its thematic concentration, sensitivity to the semiconductor cycle, fee level and holdings composition.

Because the fund is concentrated in the AI semiconductor and infrastructure supply chain, volatility can rise sharply during a semiconductor downturn or a technology stock correction. The high weighting in stocks with big growth expectations and the high fees are also risk factors.

It is an active thematic ETF suited to growth-oriented investors who want to bet on the long-term growth of AI infrastructure and the semiconductor supply chain. Given its thematic concentration and volatility, it is best used as one part of a diversified portfolio.