Exchange Traded Concepts and xETFs launched the actively managed xETFs AI Bottlenecks ETF on NYSE Arca under the ticker NECK on 23 September 2026, the companies said in their launch announcement.
Key points
- NECK seeks exposure to companies involved in potential AI infrastructure constraints, including memory, networking, power and computing.
- Exchange Traded Concepts is the investment adviser and xETFs is the sub-adviser, according to the companies.
- The managers say they may change the portfolio as supply constraints and market conditions evolve.
NECK targets five areas of AI infrastructure
The companies say NECK seeks to invest around potential constraints in the AI ecosystem rather than hold broad exposure to businesses associated with the technology. Its stated areas of consideration are memory; optics, photonics and networking; power and infrastructure; semiconductors and compute; and constraints that may emerge as AI develops.
The strategy rests on the companies’ view that demand for some components and infrastructure may exceed available supply. They identify connectivity, computing capacity, cooling and data centres among the inputs required to expand AI systems. A supply constraint is therefore a possible investment premise for the fund, rather than an established condition across every area it considers.
Garrett Stevens, Chief Business Officer and co-Founder of Exchange Traded Concepts, said the fund was designed to look beyond prominent AI companies towards components and infrastructure that could affect the pace of expansion. The companies describe the intended holdings as businesses supporting AI deployment, rather than a cross-section of the entire AI value chain.
xETFs can adjust NECK’s holdings
Exchange Traded Concepts serves as NECK’s investment adviser, while WallStreetX ETFs, which operates as xETFs, is its sub-adviser, according to the companies. The fund is distributed by Foreside Fund Services, which the announcement says is unaffiliated with either adviser.
Johnny Wu, Founder and CEO of xETFs, said constraints could ease in one part of the industry and arise in another. The active mandate is intended to let the portfolio change periodically as the managers reassess where those pressures lie. The companies also say the fund may rebalance in response to market conditions.
For prospective holdings, the companies say the investment process may assess how severe and persistent a supply-demand imbalance is, as well as its economic importance. Pricing power, valuation and competitive position are also among the stated considerations. Those criteria put the price of a company’s shares alongside its position in a constrained market when the managers assess an opportunity.
Exchange Traded Concepts describes itself as an SEC-registered investment adviser specialising in white-label ETFs and related services. xETFs says it is a New York-based investment adviser founded by Wu, Kenneth Wong and Lisa Donohoe. Their roles on NECK place portfolio decisions with the advisers, while investors bear changes in the value of the fund’s holdings.
NECK quoted at $24.80 on 24 September
NECK was quoted at $24.80 at the close on 24 September, down $0.23, or 0.93%, Yahoo Finance reported. It listed trading volume of 6,959 and average volume of 4,500.
The companies direct investors to the fund’s prospectus and summary prospectus for its objectives, charges, expenses and principal risks. They caution that investing can involve loss of principal and that past performance does not guarantee future results.
The companies also warn that heavy exposure to an issuer, industry, group of industries or asset class can make the fund more vulnerable to adverse events affecting that part of its portfolio. A deterioration in an issuer’s financial condition can reduce the fund’s value.
