world-economy

Investment Shift Toward 'AI-Proof' Companies Gains Momentum

Investors are increasingly rotating capital into companies with substantial physical assets and infrastructure resistant to artificial intelligence disruption, a strategy gaining traction across major financial institutions.

The approach, termed HALO (heavy assets, low obsolescence) by Josh Brown, co-founder and CEO of Ritholtz Wealth Management, has driven strong performance this year. FedEx and ExxonMobil have each gained nearly 30 percent since January, while Coca-Cola has advanced approximately 17 percent.

Goldman Sachs and Morgan Stanley have both incorporated this investment thesis into their research frameworks for 2026. These companies require tangible physical infrastructure to operate. Electricity must flow, goods must be produced, and transportation networks must function—services that technology cannot fully replace.

Roundhill Investments launched the LOHA ETF this week to provide direct investor exposure to this trend. The fund tracks an index of large-cap U.S. firms whose value derives primarily from physical assets and infrastructure across industrial and transportation sectors.