Roundhill Investments is looking to replicate the success of its blockbuster Roundhill Memory ETF (BATS:DRAM) by launching two new funds targeting niche corners of the artificial intelligence infrastructure ecosystem.
The ETF issuer on Thursday introduced the Roundhill Neocloud ETF (NASDAQ:NCLD) and the Roundhill Photonics & Optics ETF (BATS:LYTE), extending its strategy of offering highly targeted exposure to AI themes rather than broad technology portfolios.
The launches come just four months after the debut of the Roundhill Memory ETF (NASDAQ:DRAM), which became the fastest ETF ever to surpass $25 billion in assets under management, highlighting investors’ appetite for specialized AI investment strategies.
NCLD is designed to capture companies providing the computing backbone for AI workloads, including GPU-as-a-Service providers, AI-focused cloud platforms and data center operators. The fund is heavily concentrated, with Nebius Group (NASDAQ:NBIS) accounting for 30.8% of assets, followed by CoreWeave Inc (NASDAQ:CRWV) at 27.3%. Other major holdings include IREN Ltd (NASDAQ:IREN), Terawulf Inc (NASDAQ:WULF), Applied Digital Corp (NASDAQ:APLD) and Core Scientific Inc (NASDAQ:CORZ), reflecting the growing importance of alternative cloud providers as demand for AI computing accelerates.
LYTE, meanwhile, targets another critical layer of the AI infrastructure stack—photonics and optical networking. As AI clusters grow larger, traditional copper connections are increasingly giving way to optical interconnects capable of transmitting data faster and with greater energy efficiency. The ETF’s largest holdings include Lumentum Holdings Inc (NASDAQ:LITE), Coherent Corp (NYSE:COHR), Ciena Corp (NYSE:CIEN), Fabrinet (NYSE:FN)and Applied Optoelectronics Inc (NASDAQ:AAOI), alongside several Chinese optical networking companies.
The two launches broaden Roundhill’s AI infrastructure franchise beyond semiconductors. While DRAM focused on memory-chip manufacturers benefiting from the surge in AI demand, NCLD shifts attention to companies supplying AI compute capacity, and LYTE targets the networking technologies that move vast amounts of data between GPUs and servers.
“DRAM proved that investors want precise exposure to the AI infrastructure trade, not another broad tech fund,” Roundhill CEO Dave Mazza said. “NCLD and LYTE extend that approach to two critical layers of the AI buildout: the neoclouds providing compute and the photonics companies moving data at the speed of light.”
The launches also underscore a broader trend in the ETF industry, where issuers are increasingly carving the AI value chain into investable themes. Following DRAM’s rapid asset growth, Roundhill is betting that investors are willing to back increasingly specialized slices of the AI ecosystem as the infrastructure buildout continues.
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