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1 No-Brainer Artificial Intelligence (AI) ETF to Buy With $65 Ahead of 2026
NvidiaNvidia(US:NVDA) The Motley Foolยท2025-10-15 08:49

Core Viewpoint - The Roundhill Generative AI and Technology ETF is positioned as a strong investment opportunity for those looking to capitalize on leading AI stocks, particularly as the AI boom is expected to continue driving market-beating returns into 2026 [1][4]. Group 1: ETF Performance and Holdings - The Roundhill Generative AI and Technology ETF has seen a significant increase of 52% in 2023, outperforming the S&P 500 index, which gained only 11% [3]. - The ETF is heavily concentrated, holding just 43 stocks, with its five largest positions accounting for 25.1% of the total portfolio value [5]. - Nvidia is the largest holding in the ETF, and its GPUs are critical for AI development, with the latest Blackwell Ultra chips offering up to 50 times more performance than older models [2][6]. Group 2: Key Customers and Competitors - Major customers of Nvidia include Alphabet, Oracle, Microsoft, and Meta Platforms, all of which utilize Nvidia's GPUs for their AI models and cloud computing services [7]. - Other notable stocks in the ETF include Broadcom, Advanced Micro Devices, Amazon, Palantir Technologies, and Micron Technology, each contributing to the AI ecosystem in various capacities [9]. Group 3: Investment Strategy and Costs - The ETF is actively managed, allowing for regular adjustments to the portfolio to optimize returns, which has contributed to its strong performance since its establishment in May 2023, with a return of 141% compared to the S&P 500's 56% [11][12]. - The ETF has an expense ratio of 0.75%, which is significantly higher than passive index funds, potentially impacting long-term returns despite current strong performance [12][13].