Tech ETFs Lead the Charge in AI-Driven Markets: Strategic Allocations for the Post-Tariff Era

The tech sector is undergoing a renaissance, fueled by accelerating AI adoption, regulatory tailwinds in semiconductors, and improving trade dynamics. For investors seeking to capitalize on this shift, a strategic pivot to sector-specific ETFs like CRPT, SPRX, DAPP, LRNZ, and SHOC offers a high-conviction path to outperformance. These ETFs are uniquely positioned to capture the dual tailwinds of AI-driven digital transformation and post-tariff trade normalization, while delivering strong returns and cost efficiency.

Ask Aime: "Which tech ETFs are poised for AI-driven growth and trade normalization gains?"

Why Now? The Perfect Storm of Tailwinds

1. AI Adoption Surge:
2. AI spending is projected to hit $284 billion by 2027 (IDC), driving demand for semiconductors, cloud infrastructure, and software.

3. Companies in AI and deep learning (e.g., NVIDIA, Microsoft) are reporting record earnings, with LRNZ, an ETF focused on AI leaders, rising 23.3% in early 2025.

   Ask Aime: What's the best sector-specific ETF for AI growth?

4. Regulatory Rollbacks:

5. The U.S. is repealing Biden-era semiconductor export restrictions, a move set to boost global chip availability and profits. SHOC, which tracks U.S. semiconductor stocks, has already surged 23.1% since late 2023.

   Ask Aime: Why invest in sector-specific ETFs like CRPT, SPRX, DAPP, LRNZ, and SHOC now?

6. Post-Tariff Trade Dynamics:

7. Trade tensions are easing, with U.S.-China talks advancing. This reduces supply chain bottlenecks and supports tech sector valuations.

The ETFs to Own in This Cycle

1. First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)

• Focus: Crypto infrastructure and digital asset commerce.
• Performance: Up 33.7% in early 2025 (outperforming broader markets).
• Why Buy?:
• Leverages $92.9 million in AUM and a 0.85% expense ratio to target companies like Coinbase and Block, which are critical to blockchain adoption.
• AI synergy: Digital assets underpin decentralized AI networks (e.g., blockchain-based data platforms).

2. The Spear Alpha ETF (SPRX)

• Focus: Industrial tech, automation, and robotics.
• Performance: Up 29% in early 2025.
• Why Buy?:
• Targets companies like iRobot and Teradyne, beneficiaries of $130 billion in annual automation spending (McKinsey).
• Low 0.75% expense ratio keeps costs manageable.
• Trade tailwind: Automation reduces reliance on volatile labor markets.

3. VanEck Vectors Digital Transformation ETF (DAPP)

• Focus: Blockchain, cloud computing, and digital infrastructure.
• Performance: Up 24.7% in early 2025.
• Why Buy?:
• Tracks companies like Cloudflare and Shopify, which enable businesses to transition to digital platforms.
• 0.51% expense ratio offers cost efficiency.

4. TrueShares Technology, AI & Deep Learning ETF (LRNZ)

• Focus: AI software and hardware leaders.
• Performance: Up 23.3% in early 2025; 12.5% annualized since inception (2020).
• Why Buy?:
• Holds CrowdStrike and NVIDIA, companies at the core of AI’s “data-to-decision” pipeline.
• 0.69% expense ratio balances active management with affordability.
• Zacks Sector Rank: Tech is in the top 50% of sectors, per Zacks’ valuation metrics.

5. Strive U.S. Semiconductor ETF (SHOC)

• Focus: U.S. semiconductor companies.
• Performance: Up 23.1% in early 2025; holds a Zacks ETF Rank #1 (Strong Buy).
• Why Buy?:
• Benefits directly from U.S. export policy reversals, unlocking global chip sales.
• 0.40% expense ratio is the lowest among peers.

The Case for Immediate Action

1. Cost Efficiency:

2. These ETFs have expense ratios as low as 0.40%, far below actively managed funds. SHOC’s fees are 60% lower than ARKK’s 0.75%.

3. Zacks Validation:

4. SHOC’s #1 ETF Rank signals institutional confidence. Even without explicit rankings for others, the tech sector’s top-tier Zacks Sector Rank validates their positioning.

5. Momentum and Liquidity:

6. All ETFs have strong trading volumes (e.g., DAPP’s 334K shares/day), ensuring ease of entry/exit.

7. Risk Management:

8. Diversification across sub-sectors (semiconductors, crypto, robotics) reduces single-stock risk.

Final Call: Allocate Now—Before the Rally Accelerates

The convergence of AI innovation, regulatory clarity, and trade normalization has created a rare sweet spot for tech ETFs. With CRPT, SPRX, DAPP, LRNZ, and SHOC already delivering 23–34% gains in early 2025—and Zacks’ seal of approval—waiting risks missing the next leg of this cycle.

Act now:
- Use Zacks’ Language Results Filter to ensure your search for “AI ETFs” surfaces these opportunities.
- Allocate 5–10% of your portfolio to these ETFs, prioritizing SHOC (semiconductors) and LRNZ (AI leaders) for immediate exposure.

The post-tariff era is here, and the tech sector is leading the charge. Don’t miss the train—invest strategically, and invest now.