Everyone knows that NVIDIA is the undisputed leader of the artificial intelligence revolution. However, because NVIDIA operates as a completely "fabless" chip designer, they do not physically manufacture, package, or cool a single piece of the hardware they sell. Instead, they rely on a highly consolidated, deeply integrated global web of partners to bring their hardware to life.
For sophisticated investors and financial advisors constructing precision technology portfolios, focusing solely on the brand name at the top of the stack ignores where the true pricing power and structural moats live. The physical bottlenecks of the AI era belong to the suppliers.
To bridge this massive gap, we launched the PurePlay NVIDIA Ecosystem Picks & Shovels Index ETF (NASDAQ: NVPS). This is the first-ever investment vehicle on the market designed specifically to track the end-to-end physical value chain of NVIDIA's global suppliers.
Explore the NVPS Prospectus and Current Holdings Here
The Giants of the Ecosystem: Where the Chips are Built
Bringing an advanced AI chip to market requires orchestrating some of the most complex engineering processes in human history. This massive physical workload is distributed among highly specialized global suppliers.
TSMC (Taiwan Semiconductor Manufacturing Company): The physical foundation of the entire ecosystem. They are the only foundry with the advanced manufacturing scale and precision required to reliably fabricate NVIDIA's cutting-edge processors.
ASML: The absolute gatekeeper of advanced silicon. They hold an exclusive global monopoly on the extreme ultraviolet (EUV) lithography machines required to print microscopic circuit lines onto silicon wafers.
SK Hynix & Micron: The high-bandwidth memory (HBM) leaders. Standard memory is too slow to feed data to advanced AI processors, making these vertically-stacked memory suppliers absolutely critical to system performance.
Navigating the Hardware Bottlenecks
The tech sector is currently hitting massive physical limits, turning several niche hardware components into highly profitable chokepoints.
First, we are hitting a thermodynamic wall. These next-generation computing clusters run so hot that traditional air conditioning inside data centers is no longer viable. The bottleneck has rapidly migrated to heavy industrial power equipment and direct-to-chip liquid cooling systems manufactured by companies like Vertiv.
Second, the industry is hitting the physical limits of how small a single transistor can be printed on silicon. To bypass this, suppliers are shifting to "advanced packaging" (pioneered by companies like ASE Industrial), which involves meticulously sewing multiple distinct pieces of silicon together into a single ultra-dense module. If any of these specialized packaging, cooling, or lithography steps experience a delay, the entire global AI buildout instantly grinds to a halt.
Direct Access to the Ecosystem with NVPS
Rather than forcing investors to play "whack-a-mole" trying to time the cyclical swings of memory chips, liquid cooling, or optical networking, NVPS packages the entire end-to-end partner ecosystem into a single ticker.
Most broad technology funds dilute your AI exposure by holding heavy positions in social media, consumer software, or legacy tech giants. NVPS offers a clean, unbundled alternative: direct ownership of the physical, irreplaceable factories and infrastructure providers that are physically manufacturing the future.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please visit the website at www.pureplayetfs.com. Read the prospectus or summary prospectus carefully before investing.
The Fund is distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor of the Fund. Foreside Fund Services, LLC is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives.
New/Smaller Fund Risk. A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.
Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.
NVIDIA Dependence Risk. Because the Index is designed to provide exposure to companies that have a material commercial relationship with NVIDIA, the Index, and therefore the Fund, is highly sensitive to NVIDIA-specific developments. Actual or perceived adverse events at NVIDIA, including financial distress, demand declines, supply or regulatory disruptions, litigation, reputational harm, strategic shifts, or insolvency, could impair the results and valuations of Index constituents that rely on NVIDIA as a key customer, supplier, or technology partner, leading to material declines and heightened volatility in the Fund.