WisdomTree Artificial Intelligence and Innovation Fund (WTAI) Covered Calls

WisdomTree Artificial Intelligence and Innovation Fund is an exchange-traded fund that tracks a diversified index of companies driving the evolution of AI. The firm utilizes a quantitative and fundamental approach to target four key segments: software, semiconductors, hardware, and innovation. By offering global exposure to both established tech giants and emerging pioneers, the fund provides investors with a liquid vehicle to capture the long-term AI supercycle.

You can sell covered calls on WisdomTree Artificial Intelligence and Innovation Fund to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for WTAI (prices last updated Fri 4:16 PM ET):

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The WisdomTree Artificial Intelligence and Innovation Fund (WTAI) is a thematic ETF that provides broad-spectrum exposure to the global artificial intelligence ecosystem. Unlike narrower hardware-only funds, the fund tracks the WisdomTree Artificial Intelligence & Innovation Index. This methodology identifies companies across four primary functional categories: enablers, enhancers, addressers, and innovators. This diversified structure aims to capture value not just from chipmakers, but from the software and infrastructure providers that operationalize AI.

2026 Performance and Strategic Thematic Pivot

In April 2026, WisdomTree’s research team announced a significant thematic update to the fund’s underlying strategy, officially introducing "AI Security" as a core pillar. This shift reflects the 2026 market reality where protecting AI models from adversarial attacks and ensuring data privacy have become as critical as the compute power itself. Consequently, the fund has increased its exposure to cybersecurity firms that utilize AI for threat detection, such as Palo Alto Networks and specialized AI-governance startups.

Financially, the fund has shown strong resilience, reporting a 1-year total return of 49.07% as of March 31, 2026. While it experienced some volatility in early 2026 due to sector-wide valuation cooling, the fund maintained a healthy asset base of approximately $406 million. With a competitive expense ratio of 0.45%, it remains one of the more cost-effective thematic AI vehicles available to retail and institutional investors. Top holdings as of early 2026 include Amazon (4.91%), Alphabet (4.48%), and NVIDIA (4.45%), providing a balance of mega-cap stability and high-growth potential.

Competitive Landscape

The AI ETF space is characterized by a race for "purity" and scale, with the fund competing against massive broad-tech indexes and specialized robotics funds. Key competitors include:

1. Global X Artificial Intelligence & Technology ETF: The largest competitor in the space by assets under management. They compete through a broad-based index that tracks nearly 100 companies, offering a more diluted but lower-volatility entry point into the AI sector.
2. iShares Future AI & Tech ETF: A prominent competitor from BlackRock that focuses on companies at the forefront of AI innovation. They compete by leveraging the iShares brand and a lower expense ratio to attract long-term thematic investors.
3. First Trust Nasdaq Artificial Intelligence and Robotics ETF: A specialized fund that focuses on the intersection of software intelligence and physical automation. They compete for investors specifically interested in the industrial and consumer robotics application of AI.
4. Global X Robotics & Artificial Intelligence ETF: A leading fund that targets the applied use of AI in robotics and autonomous systems. They compete by focusing on the "Physical AI" aspect, including healthcare robotics and factory automation.

Strategic Outlook for 2026 and Beyond

The fund is currently prioritizing "Edge Intelligence" as a secondary theme for late 2026, focusing on companies that enable AI processing on local devices rather than just the cloud. Strategic efforts are directed toward identifying "AI-First" companies in the healthcare and financial services sectors, where the fund management believes the next wave of margin-expanding productivity gains will occur. By maintaining a 1.70% distribution yield, the fund also provides a modest income component rarely found in high-growth tech themes.

As the "AI Supercycle" matures, management expects a rotation from infrastructure toward application software. The fund is positioned to capture this through its "Innovation" segment, which includes emerging players in AI-driven drug discovery and autonomous logistics. With an average price target from analysts suggesting a 23.6% upside by 2027, the fund remains a "Moderate Buy" consensus for investors looking to balance established tech exposure with specialized AI niches.

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