If you own Invesco QQQ (QQQ) partly because you want exposure to artificial intelligence, you are getting plenty of it. Nvidia, Microsoft, Amazon, Meta, Alphabet, and Broadcom are all major Nasdaq-100 companies. But QQQ is not an AI fund. It tracks the Nasdaq-100, so your money is spread across large nonfinancial Nasdaq companies whether or not AI is central to their business.
The VistaShares Artificial Intelligence Supercycle ETF (AIS) takes a much narrower approach. It targets the infrastructure behind AI, including semiconductors, memory, data-center equipment, networking, and power. That focus has produced a remarkable run, but it has also created the kind of volatility that matters a lot more if you are approaching retirement and expect to start drawing from your portfolio.
AIS Has Left QQQ Behind So Far in 2026
The cleanest comparison is the latest standardized month-end data rather than trying to build returns from intraday prices. As of July 31, AIS had gained 71.02% year to date at net asset value, and its one-year NAV return was 117.94%. QQQ entered July up 20.19% for the year, then lost 6.60% during July, leaving it at roughly 12.3% year to date at NAV. That is an enormous performance gap, even before considering that AIS accomplished it without making Nvidia its dominant holding.
But the July numbers also explain why investors should be careful chasing that return. AIS dropped 23.78% in a single month in July, while QQQ fell 6.60%. For someone still accumulating money, that volatility may be tolerable. For a retiree withdrawing from investments to cover living expenses, a concentrated fund that can lose more than 20% in a month deserves a very different place in the portfolio than a diversified core holding.
Nvidia Isn’t Driving the Portfolio
AIS currently looks very different from QQQ. As of August 26, its largest position was SK hynix at 7.82%, followed by Micron at 6.94%, AMD at 4.95%, Marvell Technology at 4.21%, Semtech at 3.72%, Taiwan Semiconductor at 3.63%, and Vertiv at 3.55%. Nvidia did not even appear among the fund’s 10 largest positions.
That is the attraction. Instead of making the AI thesis largely dependent on a handful of U.S. mega-cap companies, AIS reaches further down the supply chain into memory, chips, networking, power, and data-center infrastructure. It is also actively managed rather than simply tracking the Nasdaq-100. The fund had 64 holdings and about $946.2 million in net assets as of August 25, up substantially from the $697.2 million reported in its May regulatory filing. Its three largest positions now account for just under 20% of assets, so the portfolio remains focused, but it is less top-heavy than the older May snapshot suggested.
The Risks Matter More When Retirement Is Close
AIS launched on December 3, 2024, so investors have only a short live track record to judge. Its prospectus also makes clear that the fund can invest heavily in semiconductor companies and foreign securities. Those holdings bring additional risks from supply chains, competition, currency movements, foreign markets, and rapid changes in technology.
Cost matters too. AIS carries a 0.75% expense ratio, compared with 0.18% for QQQ. That difference may seem small beside a 71% return, but strong thematic performance does not continue indefinitely, while fund expenses are recurring. For retirees and near-retirees, the bigger issue is what happens during the next bad stretch. AIS’s 23.78% July decline is a useful reminder that the same concentration that can magnify gains can also magnify losses. Money earmarked for near-term expenses generally should not depend on a volatile AI theme recovering on schedule.
AIS Makes More Sense Beside QQQ Than Instead of It
For an investor who owns QQQ primarily because of the AI boom, AIS offers something QQQ does not: direct exposure to more of the physical infrastructure supporting AI. But replacing an entire QQQ position with AIS would also mean exchanging a broad Nasdaq-100 holding for a much narrower thematic bet. A more measured approach is to view AIS as a possible satellite holding around a diversified core rather than as a replacement for it.
Taxes can influence that decision. Selling appreciated QQQ shares in a regular taxable brokerage account generally creates a reportable capital gain or loss. Inside a traditional IRA, investment gains generally are not taxed until money is distributed, while qualified Roth IRA distributions can be tax-free. That makes rebalancing inside an IRA potentially simpler from a current-tax standpoint, although the investment risk does not disappear. AIS has delivered exceptional returns, but for retirement money, its recent performance is a reason to investigate the fund, not a reason to ignore its volatility.