AI-Driven ETFs: Copying Star Investors' Strategies Gains Traction on Wall Street

ETFs Are Copying the Trades of Famous Investors Like Warren Buffett and Bill Ackman -- But Are They Worth It?

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. New ETFs are taking Wall Street's obsession with tracking star investors like Cathie Wood, Bill Ackman, and Warren Buffett one step further -- offering funds that aim to . It's the latest strategy to stand out in the saturated ETF market, where 746 U.S. funds launched in 2024 alone. Below, we take you through how they work and if they're worth your investment. We can divide these star investor-tracking funds into two: One of the most attention-grabbing of these ETFs has been the (IVES), launched in June 2025. The ETF comprises 30 artificial intelligence-related stocks personally curated and updated by the popular tech analyst. "It's based on our research. So as new companies come in, then some companies could come out," Ives told CNBC. "This is a living organism, in terms of this AI 30." However, the ETF will follow a more "passive" approach, shifting quarterly (with the ability to change more frequently for corporate actions) -- an eternity in the world of AI. The fund, which has gathered over $400 million in assets as of July 25, 2025, has an . In June 2025, it was reported that VistaShares was preparing to release a slate of ETFs that track the moves of famous investors, though without their involvement. VistaShares' strategy builds on the success thus far of its Warren Buffett-tracking fund, launched a few months earlier in March 2025. The VistaShares Target 15 Berkshire Select Income ETF (OMAH) has grown quickly to more than $440 million in assets, as of July 25, 2025. The fund combines Berkshire Hathaway's top 20 holdings with an options overlay strategy that targets a 15% annual income, but comes with a steep expense ratio of 0.95%. Expected to launch in August 2025, VistaShares' newer funds include the following: These funds rely on -- quarterly reports that large investment managers must file with the U.S. Securities and Exchange Commission, disclosing their holdings. The catch is that these reports arrive up to 45 days after quarter-end, potentially making the information stale. Early results show celebrity names attract capital -- OMAH and IVES prove that. But can they deliver consistent performance? Two significant challenges suggest an uphill climb: Naming an ETF after a Wall Street legend can generate buzz and attract initial investment -- IVES and OMAH prove that much. But marketing momentum only goes so far. These funds must now prove they can deliver sustained outperformance to justify their fees. Given the time lags inherent in and the poor long-term track record of many active strategies, a lot of these funds may ultimately be remembered as clever marketing gimmicks rather than innovations in investing.

Wall Street's Star Tracker ETFs Are Booming -- But Copying Warren Buffett And Bill Ackman May Be Riskier Than It Looks - Tidal Trust III VistaShares Target 15 Berkshire Select Income ETF (ARCA:OMAH), Wedbush Series Trust Dan IVES Wedbush AI Revolution ETF (ARCA:IVES)

The world of Exchange-Traded Funds (ETFs) is now witnessing a new trend - funds that aim to replicate the investment strategies of famous investors like Warren Buffett, Bill Ackman, and Cathie Wood. But are these "copycat" ETFs worth the investment? What Happened: This trend has taken shape in two distinct forms, with celebrity ETFs gaining traction through either direct involvement from star investors or by replicating their publicly disclosed trades, according to an Investopedia report on Monday. The first type, represented by the Dan Ives Model, involves direct involvement from the star investor. A prime example is the Dan Ives Wedbush AI Revolution ETF IVES, which comprises 30 AI-related stocks personally selected by the tech analyst. Despite its "passive" approach, the fund has amassed over $400 million in assets and an expense ratio of 0.75%. The second type, represented by VistaShares, tracks the moves of famous investors without their involvement. VistaShares' strategy builds on the success of its Buffett-tracking fund, the VistaShares Target 15 Berkshire Select Income ETF OMAH, which has grown to over $440 million in assets. VistaShares is set to launch similar funds tracking investors like Ackman and Michael Burry. Despite their initial success, these copycat ETFs face challenges such as time lags and high fees, which could impact their long-term performance. See Also: Trump Mulls 'Little Rebate' For Americans Funded By Tariff Revenue -- But Here's The 'Big Thing' He Wants To Do First Why It Matters: The rise of celebrity ETFs reflects a growing trend of investors seeking to replicate the strategies of successful market players. This trend has been further fueled by the impending departure of Warren Buffett as CEO of Berkshire Hathaway BRK BRK, prompting investors to look for alternative ways to benefit from his investment approach. Additionally, the success of the Dan Ives Wedbush AI Revolution ETF (IVES) could be attributed to Ives' strong track record in the tech industry and his strategic selection of AI-related stocks. Read Next: Gold Revaluation: Nuclear Option America Might Pull Again Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock IVESWedbush Series Trust Dan IVES Wedbush AI Revolution ETF$28.400.92%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/APrice TrendShortMediumLongOverviewOMAHTidal Trust III VistaShares Target 15 Berkshire Select Income ETF$19.36-1.73%Market News and Data brought to you by Benzinga APIs