New AI Software Fund Charges 0.45% Fee, Outshines ARKK

A new investment fund offers a low-cost alternative to the popular ARKK ETF, focusing on profitable AI software companies such as NVIDIA, Amazon, Micron, and Palo Alto Networks with an annual expense ratio of just 0.45%.

Fund Details

The new fund, whose name has not been disclosed, tracks an index of software companies leading the AI revolution. Its expense ratio is 0.45%, significantly lower than ARKK's 0.75%. Top holdings include NVIDIA (NVDA), Amazon (AMZN), Micron (MU), and Palo Alto Networks (PANW).

Comparison with ARKK

Cathie Wood's ARKK ETF focuses on disruptive innovation across AI, genomics, fintech, and autonomous technology, but invests heavily in unprofitable, high-growth names. In contrast, the new fund targets profitable companies already generating revenue from AI.

What This Means for Investors

This fund provides a low-cost option for investors seeking exposure to the AI sector without the high risk associated with traditional innovation funds. However, investors should assess their investment goals and risk tolerance before making any decision.