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.
Investors seeking exposure to CRWV stock may consider ARK Next Generation Internet ETF (ARKW) and 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.
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.
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.
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.