One of the market's hottest stock themes is buying everything AI can't replace
Investors are increasingly focusing on companies that are less likely to be disrupted by AI, a trend known as the HALO trade. This strategy emphasizes businesses with heavy physical assets and low obsolescence, which are seen as more resilient in the face of technological change. The Roundhill Halo ETF has been launched to track these types of companies, which include well-established firms like FedEx and ExxonMobil.
- ▪The HALO trade focuses on companies that AI is less likely to disrupt.
- ▪Goldman Sachs and Morgan Stanley have incorporated HALO into their investment research.
- ▪The Roundhill Halo ETF launched recently, tracking companies with significant physical assets.
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As investors worry about all of the companies that AI will wipe out, they are rotating into the ones that AI will have a harder time disrupting. And the HALO trade, as it is called, is working.HALO, which stands for "heavy assets, low obsolescence," was coined by Josh Brown, co-founder and CEO of Ritholtz Wealth Management, in February, premised on the idea that an era of rapid AI disruption requires a search by investors for companies that are immune to it. In Brown's view, it is one of the most important investment trends of the year. Goldman Sachs and Morgan Stanley have both incorporated HALO into their investment research in 2026 as HALO stocks are doing well across the board.
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