The rapid growth in demand for memory and storage capacity in data centers is reshaping the landscape on Wall Street. While chipmakers and hyperscalers were hot investing plays during earlier phases of the artificial intelligence infrastructure build-out, now there’s much more interest in memory makers such as Micron Technology, Sandisk, and SK Hynix.
Pure-play AI memory stock exchange-traded funds are also popping up. A popular one is the Roundhill Memory ETF (NYSEMKT: DRAM), which was launched on April 2, and marketed as the first-ever memory stock ETF.
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The Roundhill Memory ETF may provide exposure to some of the best-known AI memory companies, but I prefer another option, even though it’s not a pure play on that niche: the Invesco Dorsey Wright Technology Momentum ETF (NASDAQ: PTF).
Why the Invesco Dorsey Wright Technology Momentum ETF is a better choice
I have one major concern about the Roundhill Memory ETF. With only 17 stocks in its portfolio, it lacks the diversification that I like in an exchange-traded fund. One of the biggest benefits that ETFs can offer is exposure to many stocks in one asset, but the Roundhill fund is too narrowly focused to provide that benefit.
Why is that important? The Roundhill Memory ETF is badly overbalanced in its top holdings, which means a sudden downturn for a single company’s stock could sting a lot more.
Source: Morningstar. Weightings as of Aug. 17, 2026.
The Invesco fund, on the other hand, provides more than double the diversification, as it holds 37 different companies. It tracks the Dorsey Wright Technology Technical Leaders index of U.S. technology companies, which includes many memory stocks, and currently, no single stock has a weighting of more than 6.04%.
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Source: Morningstar. Weightings as of Aug. 17, 2026. https://www.morningstar.com/etfs/xnas/ptf/quote
The Invesco Dorsey Wright Technology Momentum ETF also has an established track record. The fund was created in October 2006 as a passively managed fund to mimic the Dorsey Wright index, which is a Nasdaq product that identifies at least 30 companies for its portfolio based on how well they perform relative to their peers and show strong momentum.
The Invesco Dorsey Wright Technology Momentum ETF is up 59% in the last 12 months, and has gained 718% over the last decade, soundly beating the S&P 500.
PTF data by YCharts. There’s a big memory name missing
I never said the Invesco Dorsey Wright Technology Momentum ETF was the perfect ETF. While it provides additional diversification and has a solid track record, it focuses exclusively on U.S. companies. And that means it’s missing a major player in the AI memory space: SK Hynix. You will find the South Korean company in the Roundhill fund — and if you view that company as a must-have for your memory portfolio, then the Invesco Dorsey Wright Technology Momentum ETF won’t work for you.
Image source: Getty Images.
You also have to accept that the Invesco fund isn’t a pure play in the memory chip space. While the market for AI memory chips is hot today due to a serious shortage of production capacity relative to demand, that may not be the case two years or five years from now. If conditions change, Sandisk and its peers would cycle out of the Dorsey Wright Technology Technical Leaders index to be replaced by other tech stocks with strong momentum.
But if I were looking for an AI memory ETF now, I’d be inclined to pick the Invesco Dorsey Wright Technology Momentum ETF over more narrowly focused options.
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends KLA, Micron Technology, Teradyne, and Western Digital. The Motley Fool has a disclosure policy.
Got $100? 1 Artificial Intelligence (AI) Memory ETF to Buy Hand Over Fist was originally published by The Motley Fool