Beyond The Mag 7: Finding The Real Winners Of The AI Boom

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In this episode of ETF Spotlight, I speak with Adam Patti, CEO, and David Fetherstonhaugh, Investment Strategist at VistaShares, about the VistaShares Supercycle ETFs, which have delivered blockbuster performance this year.

Supercycle ETFs are a family of funds designed to invest in long-term, technology-driven trends that the firm believes will reshape industries over many years.

The VistaShares Artificial Intelligence Supercycle ETF (AIS - Free Report) was the firm's first Supercycle ETF, launched in December 2024. It is the best-performing AI ETF, up about 235% over the past year.

The actively managed fund invests in companies across the AI ecosystem, particularly the "picks-and-shovels" providers supplying semiconductors, servers, and data center infrastructure.

SK Hynix, Micron Technology (MU - Free Report), Advanced Micro Devices (AMD - Free Report), and Marvell Technology (MRVL - Free Report) are currently the ETF's top holdings.

By contrast, many other AI ETFs have significant exposure to the Mag-7 stocks, which have underperformed the broader market this year. Investors are growing increasingly skeptical of the massive spending by hyperscalers and want to see returns on those investments. At the same time, they are rewarding the companies benefiting directly from that spending.

The VistaShares Electrification Supercycle ETF (POW - Free Report) focuses on companies involved in upgrading electrical grids, transmission systems, transformers, energy storage, and related infrastructure needed to support rising electricity demand driven by AI and broader electrification trends.

Powell Industries (POWL - Free Report), Quanta Services (PWR - Free Report), and Eaton Corp. (ETN - Free Report) are currently the ETF's top holdings. The fund has surged about 60% this year.

Both ETFs have significant exposure to international companies that are leaders in innovation across AI and electrification. Many of these companies are not easily accessible to U.S.-based investors.

Video Length: 00:28:41