iShares A.I. Innovation and Tech Active ETF (BAI)

The iShares A.I. Innovation and Tech Active ETF (ticker: BAI) is designed to invest in companies involved in artificial intelligence and technology. This fund focuses on the tech sector, providing exposure to various companies working in advanced computing and innovation.

What this ETF is trying to do

BAI seeks to capture growth within the technology and AI sectors. It holds a variety of companies, primarily in the semiconductor and software industries. According to the provided data, the fund holds 58 total companies.

Top Holdings:

• Micron Technology Inc (6.78%)

• Advanced Micro Devices Inc (5.50%)

• NVIDIA Corp (5.19%)

• Taiwan Semiconductor Manufacturing Co Ltd ADR (4.62%)

• Broadcom Inc (4.47%)

• Lam Research Corp (3.94%)

• Intel Corp (3.26%)

• Space Exploration Technologies Corp Class A (2.93%)

• Snowflake Inc Ordinary Shares (2.85%)

• Lumentum Holdings Inc (2.74%)

*Note: This list is a partial view of the holdings and can change over time.*

What the numbers show

The fund has shown significant price movement recently. The current price is $49.44. An estimated price from roughly one year ago was approximately $34.53.

Price Return (Share-price movement only):

• Year-to-Date (YTD) Price Return: 48.47%

• One-Year Price Return: 43.18%

Total Return (Includes distributions):

• Year-to-Date (YTD) Total Return: 48.47%

• One-Year Total Return: 45.78%

When looking at these numbers, it is important to distinguish between price return and total return. The price return only tracks the change in the share price, while the total return includes the impact of distributions.

Income and distribution explanation

The BAI ETF provides a distribution yield of 1.2%. This represents the cash distributions relative to the ETF's price. The trailing distributions are $0.5933.

The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the frequency is irregular, investors should not expect a steady monthly or quarterly income stream from this fund.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Regarding price erosion (the decline in the market price of the shares), the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• Strong Price Growth: The fund has seen high price returns both year-to-date and over the last year.

• Low Price Erosion Risk: The current erosion score suggests the share price has not shown a pattern of deterioration.

Cons

• Irregular Income: Distributions are infrequent and irregular, which may not suit investors looking for consistent cash flow.

• Sector Concentration: The fund is heavily focused on the technology and AI sectors.

Beginner takeaway

BAI is a tech-focused ETF that has experienced significant share-price growth recently. While it offers some distribution income, the yield is relatively low and the payments are not made on a regular schedule. Investors should remember that high growth in share price is different from consistent income, and they should look at both price return and total return to understand the fund's full performance.