THNQ Sidesteps Nvidia Concentration With Rival Chipmakers

Core Insights - The ROBO Global Artificial Intelligence ETF (THNQ) is strategically positioned to mitigate concentration risk by holding Nvidia at only 2.25% of its assets while overweighting competitors [1][5] - Meta Platforms, Inc. is exploring alternatives to Nvidia's hardware, specifically considering Alphabet Inc.'s chips, which may indicate a shift in the tech landscape [2][7] - THNQ has attracted significant inflows, totaling $89.8 million over the past year, as investors seek diversified exposure away from Nvidia-heavy funds [5][6] Fund Positioning - THNQ tracks the ROBO Global Artificial Intelligence Index, utilizing fundamental weighting to avoid heavy concentration in Nvidia, unlike many market-cap-weighted AI funds [1][3] - The fund's top three holdings include Lumentum Holdings, Inc. (3.08%), Alphabet (2.98%), and Advanced Micro Devices, Inc. (2.93%), with Nvidia ranking as the 13th largest holding [4][6] Performance Metrics - THNQ has shown strong performance with a return of 24.7% over the past year and a three-year return of 30.2%, despite a recent decline of 7.5% in the past month [6] - The fund has a low expense ratio of 0.68%, reflecting its active methodology across 68 holdings in the AI infrastructure space [6] Market Trends - The potential shift by Meta to Google’s tensor processing units could accelerate the trend THNQ is designed to capture, as AI infrastructure costs are projected to reach $70 billion to $72 billion this year [7]