The Dan Ives Wedbush AI Revolution ETF (IVES) had quite the November—and not in a good way. After launching in June 2025 with impressive momentum, the AI-focused fund posted a 7.51% decline last month, reminding everyone that even the hottest investment themes can cool off fast.

The fund is designed to capture the explosive growth potential of artificial intelligence, investing in roughly 30 key AI companies. Think big names like Nvidia Corp (NVDA), Microsoft Corp (MSFT), and Broadcom Inc (AVGO). That concentrated approach works brilliantly when AI stocks are soaring, but it also means the fund takes the full brunt when the sector hits turbulence.

So what happened in November? Market analysts point to a classic case of concentration risk meeting a rotation moment. The long-term AI narrative—championed by Wedbush analyst Dan Ives, the fund's namesake—remains decidedly bullish. But institutional investors started shifting capital away from high-flying growth stocks and into sectors that seemed less volatile or more attractively valued. When everyone's piling into the same trade, the exit can get crowded.

The broader tech sector felt it too. The Nasdaq Composite ended its multi-month winning streak in November, creating headwinds for specialized AI vehicles like IVES. Semiconductor companies, whose valuations had rocketed on AI enthusiasm, faced particular pressure as investors paused to digest the massive gains and lock in profits.

This is exactly the kind of volatility that thematic ETFs are known for—it's right there in the fund's prospectus. The official documents highlight both concentration risk and AI technology risk, warning that any downturn affecting the AI industry or the broader tech sector will have a magnified negative impact on the ETF's value. When you're concentrated in 30 stocks rather than hundreds, every bump feels bigger.

Here's the silver lining: despite the November stumble, IVES is still up over 27% since its June 2025 launch. That's the nature of high-risk, high-reward investing. For investors with a long-term horizon, short-term dips like this can look like buying opportunities. For those new to specialized, high-growth funds, it can feel jarring.

The fund's future performance will hinge on how its core holdings—particularly semiconductor and software AI platform companies—continue to execute. The AI story isn't going anywhere, but how that story translates into stock prices month to month? That's always going to be a wilder ride.