After DRAM, Roundhill strikes again! This time betting on the new giants of optical communications and computing power!

Smart money stopped focusing on the shovels themselves long ago and started looking upstream and downstream of the shovel!

On August 6th, Roundhill launched two ETFs with tickers NCLD and LYTE. One covers "where computing power comes from," and the other covers "how computing power is connected." Both have a fee rate of 0.65% and are actively managed.

NCLD: In plain terms, it's the "Second Landlord of Computing Power"

$Roundhill Neocloud ETF(NCLD.US) Its full name is Neocloud ETF, "New Cloud." It claims to be the first of its kind in the market.

If you want to train a large model but can't get or afford NVIDIA's chips, someone else has already hoarded tens of thousands of cards, built data centers, powered them up, installed water cooling, and rents them out by the hour. This business is the new elite of computing power, abbreviated as "Neocloud." $Coreweave(CRWV.US) $Nebius(NBIS.US) do exactly this, along with some [crypto mining companies] transitioning to HPC (High-Performance Computing).

For example: $IREN(IREN.US) $Hut 8 Mining(HUT.US) $Terawulf(WULF.US) $Applied Digital(APLD.US) $Cipher Digital(CIFR.US) $Core Scientific, Inc.(CORZ.US) $CleanSpark(CLSK.US)

There is also a lender specifically financing these new elites: $Galaxy Digital(GLXY.US)

It differs from old-school clouds like Amazon and Google. Old clouds charge on demand, like taking a taxi, paying for what you use; many new clouds sign multi-year long-term contracts now, like monthly long-term tenants, making revenue more predictable. This is the underlying logic for why this track was singled out for an ETF.

Just $Nebius(NBIS.US) alone accounts for 30%, and adding $Coreweave(CRWV.US)'s 27%, the top two heavyweights account for nearly 60%. In other words, when you buy it, most of your stake is actually bet on these two companies.

LYTE: The "Highway Construction Crew" Inside AI Data Centers

$Roundhill Photonics & Optics ETF(LYTE.US) As more and more cards are stacked, the real headache isn't the cards themselves, but how to shuttle data between them.

Copper wires have reached their limit; they are hot and slow, unable to keep up with the appetite of GPUs. So everyone switched to light—transmitting data directly via lasers through fiber optics, which is faster and more energy-efficient. Those responsible for building this "light-speed highway" are companies in optical modules, silicon photonics, and optical interconnects. LYTE holds positions in them, requiring that related business revenue accounts for over 50% to be included.

The top heavyweights include $Lumentum(LITE.US), $Coherent Corp.(COHR.US), and $Ciena(CIEN.US), these old-line optical device manufacturers. But scanning further down, you'll see two familiar faces: $ZJ INNOLIGHT(03308.HK) and $Eoptolink(300502.SZ). US companies account for 50.52%, and Chinese companies account for 46.8%.

$TFC(300394.SZ) A global leader in precision manufacturing of optical devices, mainly providing key passive components, active packaging, and optical engine accessories for global high-speed optical module manufacturers.

$YUANJIE SEMICONDUCTOR(688498.SH) A pioneer in domestic substitution of optical chips in China, researching and producing core high-speed laser chips (DFB/EML) needed for AI data centers and the telecom market.

$Accelink(002281.SZ) An old-line Chinese optoelectronic device component manufacturer, covering the full range from chips and devices to optical modules.

$Fabrinet(FN.US) — Specializes in ODM for the optical communications industry and is also NVIDIA's "exclusive" foundry: exclusively taking orders for the 800G/1.6T high-speed optical transceivers and related optoelectronic systems required by Blackwell.

$Applied Optoelectronics(AAOI.US) — High-speed optical transceivers (up to 800G/1.6T) and laser chips. Complete 配套 from design to manufacturing.

What needs to be clarified is:

Although these US ETFs carry A-share targets in their names (such as Zhongji Innolight), LYTE does not actually buy A-shares directly but signs a "swap" contract with investment banks.

Why not buy directly? Because the A-share market is not freely open to foreign capital. You have to go through QFII or Stock Connect, requiring qualifications, quotas, T+1 settlement, and facing RMB exchange controls. For an ETF that needs flexible daily subscription/redemption and cross-time-zone monitoring, this process is too cumbersome.

So it simply outsources—achieved by holding swap contracts. Qualified investment banks hold the quotas, channels, and know how to hedge; they handle the dirty work—truly figuring out "how to hold A-shares." The ETF side doesn't touch physical assets, just needs to receive "returns identical to holding A-shares."

Some people ask: What's the difference between LYTE, FOTO, EUV, and LAZR?

$Roundhill Photonics & Optics ETF(LYTE.US) A portfolio with highly concentrated holdings in Chinese and American optical module leaders, including the A-share "Yi-Zhong-Tian" trio.

$Tuttle Capital Pure Play Photonics ETF(FOTO.US) Leans towards small and mid-cap stocks, purer and more concentrated in photonics and optical communications, but with higher volatility.

$Luminar Tech(LAZR.US) Covers materials, outsourcing, testing, etc., in addition to optical modules.

$Corgi Lithography & Smcndctr Phtncs ETF(EUV.US) A hybrid theme focused primarily on semiconductor equipment with some optical communications.

Optical interconnect is the third chip of AI, and expanding computing infrastructure is equally important. Which side will you bet on? Chat in the comments 👇

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