Wedbush Securities Head of Global Technology Dan Ives Talks ETFs
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Bloomberg Audio Studios. Podcasts, radio, news. Daniel Ives joining us. Dan, I want to get this out of the way right away. You're in registration at an ETF. Come on, top of the market. You just want to be on the cover of Barron's. Why is your ETF going to be different than the 4,000 others out there that don't wear pink coats?

Yeah, and look, it launched yesterday. And look, to me, it's 25 years covering tech, right? I mean, it's all the research we do in tech and all the investors around the world that have followed us. Now it's an ETF focused on AI. What do you envision the portfolio turnover rate will be? Is this going to be buy and hold, stodgy ETF, or are you going to be in there day trading?

No, it's going to be pretty long-term, right? I mean, we could have changes in terms of the Ives AI30 that make this up. But look, it's a living organism. And I think the AI revolution we've talked about, the reason we're doing it now, this is only...

Remember, it's only 10 p.m. in the AI party that goes to 4 a.m. Okay, Dan, Michael Purvis just in with us here on the Microsoft moonshot. You know, he's saying it's techs up, techs down, that. I don't buy it. What I see here is a bet on future earnings persistency. Can the tech group sustain up 30%?

growth, or do they have that still a whopping up 16% growth? What's your bundled growth rate for tech forward? I mean, look, I think it's acceleration here. I mean, to me, I think streets underestimating tech growth by three to 500 bps.

for the rest of the year. I mean, look what's happening in terms of the AI spending trends. And when it comes to what's happened in Redmond, that's right in their backyard. That's why Microsoft's going to be the one that I think that's a stock 500s next stop, and ultimately, you know, 550, 600 is not out of the question. You know, Paul, Tucker told me...

oh by redmond there you go exactly i didn't do so well there you go exactly hey dan uh alex steel and i you know we just spent two days with the folks at bank of new york at one of their off-site conferences with their wealth management clients and the bny people to a person said the most important thing in their business is ai just help us step back 30 000 feet now that you've got this etf uh

Where are we in kind of the ETF deployment, adoption, spending? Give us a 30,000-foot view. Yeah. I mean, look, I agree with what they're saying. I mean, I think this is the biggest tech trend that we've seen, not just in 25 years for us, but I think that we've seen the last 40, 50 years. And I think, look, it's changing the investing climate, right? It's changing the appetite for risk. And, Paul, my view is that...

Both from the operations and the use cases perspective, they're exploding across financial services and the appetite for investors globally when it comes to AI. Again, you want to be in the left lane of Ferrari in terms of big tech going 95 miles an hour, not a lot of these sort of value 30 miles an hour right lane, a minivan. To me, I just continue to ride on tech.

Dan Ives, in the time we've got left, the one laggard here, the chart is amazing, folks. Apple is so different from the other Mag7s. And there's this thing and this thing. Ives, I'm sure, will be in the third row at the conference coming up for Apple. I'm looking at the screen, Dan Ives, and I'm modeling 92-111.

108, 98, 104, maybe a modeled 121 billion of free cash flow out in the next 18 months. Do you just see that financial performance coming right back over to a stock lift? Or is it a product China issue? Well, first off, I think free cash is being underestimated in terms of those numbers. And look, we'll be there on Monday. It comes down to like,

They were late on AI, but the consumer AI revolution is coming through Apple. And I think what you will see laid out Monday is now sort of going to be the blueprint for how developers are going to be building AI on top of Apple. And my view is like this overhang that we're seeing here,

This will be short-lived as the growth comes back to the story. And I continue to think it's a China-driven, caught in this Category 5 tariff storm. Dan, the Dan Ives Wedbush AI Revolution ETF. Who is the target audience for this, do you guys think? And then second, just kind of what's the timing? When is this coming to market?

Yeah, it came to market yesterday. Okay, great. And obviously, it was a very exciting first day. Look, it's institutional, but obviously, it's retail, a lot of investors from around the world, right? I mean, wherever I go, people say, how do you play AI? Now you're given the vehicle to play my research that ultimately builds this AI theme. And that's what really, I think, what differentiates it. So how has your day changed now that you're a portfolio manager, a wise one?

But Tom, it doesn't change because this is all built on a research. If I add, if I'm upgrading, if I'm adding names, all of our research, the AI30, the ETF is the first ETF built on an analyst research. And I think that's one where investors around the world that follow us and they've navigated us for decades. Right. This is now the actual vehicle to play our research in a theme. Look at,

you with the weightings. I've got it on the Bloomberg terminal, of course, folks. That's the way we roll. I'm going to do the math. We got to go to bar, but come on, Dan, what do you hold? Like eight, you own eight holdings in your ETF? It's the AI 30. It's the Ives AI 30, 30 names that make up what I've used AI revolution. And look, it's like,

This is just, it's the second, third, fourth derivatives, right? That's what I'm talking about here. Dan, congratulations on that. Really, really a major, major congratulations. May you survive the first 90 days. Every business starts with an idea. How can you go from daydreamer to industry leader? Amazon Business accelerates your journey.

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