Roundhill Memory ETF hits $10bn in 50 days as AI chip demand rises

In short: A new fund focused on memory chip companies reached $10bn in assets in just 50 days, as investors rush into AI-related investments.

What's going on

Investors are pouring money into exchange traded funds, or ETFs (basket-like funds you can buy and sell like a stock), that focus on companies seen as winners from the AI boom.

One example is the Roundhill Memory ETF, which trades under the ticker DRAM. It launched on April 2 and rose 87% in about 50 calendar days. It reached $10bn in assets after taking in about $8.6bn of new money, according to Morningstar, which tracks fund data.

This is the fastest any ETF has reached $10bn in assets on record, Morningstar data shows. It beat the previous rapid rise seen in the Fidelity Wise Origin Bitcoin Fund, which reached $10bn in 81 days in 2024.

DRAM is tightly focused. About 73% of the fund is in just three companies, SK Hynix and Samsung Electronics in South Korea, and Micron Technology in the US. That concentration is a key risk, like owning a “basket” that is mostly filled with three items.

What to watch

More funds like this may launch as issuers try to copy DRAM’s success. Investors may also watch whether demand for AI data centers (large buildings packed with computers) keeps pushing chip stocks higher, or whether high prices and a narrow focus lead to sharper ups and downs.

Source: Financial Times