By Suzanne McGee

Sept 3 (Reuters) - SoFi Technologies SOFI.O jumped back into the exchange-traded fund business on Wednesday with its first launch in nearly two years, betting on artificial intelligence, the hottest theme in retail investing.

The new fund, SoFi Agentic AI ETF, will target what SoFi calls “next-generation AI” companies, such as those developing self-driving vehicles, autonomous technology and cybersecurity networks, as well as AI stalwarts such as semiconductor and cloud computing firms.

The debut comes as enthusiasm for all things AI faces a test, with investors asking tougher questions about sky-high valuations of AI leaders like Nvidia NVDA.O and Palantir Technologies PLTR.O, as well as AI's ability to generate outsize productivity and profitability gains.

SoFi's ETF will track the performance of a new tailor-made index from Solactive, the BITA USA Agentic AI Select Index, and will levy a fee of 0.69%.

Brian Walsh, head of advice and planning at SoFi, told Reuters that the index's current 30 components range from some of the most-owned AI investments, such as Nvidia, to more unusual ways to play the theme, such as Intuitive Surgical ISRG.O and Deere & Co. DE.N, firms which are integrating AI into robotic surgery products and farm equipment.

Solactive screens potential holdings to identify companies that derive "a meaningful portion of their revenue" from deploying AI.

"This goes above and beyond what first-generation AI exposure can provide," said Walsh, adding that he expects the composition of the underlying index to alter as the theme evolves.

SoFi, a digital financial services platform, has backed five other ETFs, the most recent of which, the SoFi Enhanced Yield ETF THTA.P, debuting in November 2023.

Roxanna Islam, head of sector and industry research at VettaFi, noted the AI-themed ETF market is becoming "crowded", as asset managers rush to roll out more products.

Some 190 single-stock leveraged and inverse ETFs now offer investors a way to bet on outsize moves in underlying stocks like Nvidia, Tesla TSLA.O and Palantir that are linked to the AI theme.

"It's going to be hard to stand out from the crowd and gather assets at this point," she said.

The most recent AI-themed ETF to launch was the Janus Henderson Global Artificial Intelligence ETF JHAI.O on August 19. That fund has seen inflows of $1.9 million since its debut.

Steve Sosnick, market strategist at IBKR, said that in spite of the profit-taking on big AI stocks like Nvidia in recent days, "the enthusiasm for this theme is still driving the bus."

(Reporting by Suzanne McGee, Editing by Nick Zieminski)

((Suzanne.McGee@thomsonreuters.com; 917-285-4385;))