AI infrastructure firm CoreWeave (CRWV) has dropped 38% since posting its Q2 earnings on August 11. This downside came despite CRWV’s 207% year-over-year revenue growth and a record $30.1 billion backlog. However, soaring expenses and CoreWeave’s IPO lock-up period expiration spooked investors. Thus, this dip may present a buying opportunity for long-term investors, especially through exchange-traded funds (ETFs) that offer diversified exposure to CRWV without the risk of holding the stock directly.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Investors seeking exposure to CRWV stock may consider ARK Next Generation Internet ETF (ARKW) and YieldMax AI & Tech Portfolio Option Income ETF (GPTY).
Let’s take a deeper look at these two ETFs.
YieldMax AI & Tech Portfolio Option Income ETF (GPTY)
GPTY is an actively managed fund that invests in top AI and tech companies, such as Nvidia (NVDA), Palantir (PLTR), Microsoft (MSFT), and CoreWeave, while using options strategies to generate income. It is designed for investors who want exposure to fast-growing tech stocks plus regular income payouts.
CoreWeave stock constitutes 4.39% of the ETF’s holdings. Overall, the ETF has $49.08 million in AUM. Also, it has an expense ratio of 0.99%. The GPTY ETF has gained 6.09% in the past three months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 25 stocks held, 17 have Buy and eight have Hold ratings. At $50.05, the average GPTY ETF price target implies a 13.11% upside potential.
ARK Next Generation Internet ETF (ARKW)
The ARKW ETF is an actively managed fund that invests in companies shaping the future of the internet. It is run by Cathie Wood’s ARK Invest and focuses on big innovations like AI, blockchain, and cloud computing. Importantly, CRWV stock accounts for 1.56% of the ARKW ETF’s total holdings.
Apart from CoreWeave, some of the top stocks in the ARKW ETF are Tesla (TSLA), Coinbase (COIN), and Roku (ROKU). Overall, the ETF has $3.01 billion in assets under management (AUM). Also, it has an expense ratio of 0.82%. Over the past three months, the ARKW ETF has generated a return of 33.4%.
On TipRanks, ARKW has a Moderate Buy consensus rating based on 33 Buys and 13 Holds assigned in the last three months. At $174.51, the average ARKW ETF price target implies 13.14% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to CRWV stock, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider ARKW and GPTY, as these ETFs offer exposure to CoreWeave stock.