Exchange Traded Concepts and WallStreetX ETFs have launched the xETFs AI Bottlenecks ETF (NYSE:NECK), an actively managed fund targeting companies tied to supply constraints across the artificial intelligence ecosystem.

NECK focuses on areas including memory, optics and photonics, networking, power and infrastructure, semiconductors and compute. The strategy looks for companies where supply-demand imbalances, pricing power or hard-to-replicate positions could create investment opportunities.

Unlike broad AI ETFs, NECK focuses on the physical and technological infrastructure needed to scale AI, with the portfolio able to shift as bottlenecks evolve.

"The AI buildout can only move as quickly as its scarcest inputs allow," xETFs CEO Johnny Wu said.

QUICK CONTEXT: AI’s Infrastructure Bottleneck Trade

The AI investment story is increasingly moving beyond software and mega-cap technology stocks toward the infrastructure required to support growing AI workloads. NECK’s approach targets this layer of the ecosystem, including memory, networking, power, cooling and data-center infrastructure.

The fund’s active-management structure is central to the strategy. Instead of maintaining fixed exposure to a broad group of AI companies, NECK can adjust its holdings as supply constraints change. A shortage in one part of the ecosystem could ease while another emerges as AI adoption expands.

Exchange Traded Concepts said companies will be evaluated based on factors including the severity and durability of supply-demand imbalances, the economic importance of a constraint, pricing power, valuation and competitive positioning.

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