For the past several years, investors have focused on identifying the biggest winners of the artificial intelligence revolution. In 2026, however, a new investment theme is gaining momentum on Wall Street: finding the companies that AI is least likely to disrupt.

The strategy, known as HALO—short for Heavy Assets, Low Obsolescence—has quickly become one of the market’s most talked-about investment trends. The premise is straightforward. As artificial intelligence rapidly transforms industries and challenges traditional business models, investors are increasingly drawn to companies whose operations depend on physical infrastructure, real-world assets, and services that cannot easily be replaced by software.

The concept was introduced by Josh Brown, co-founder and CEO of Ritholtz Wealth Management, who argues that investors should focus not only on the beneficiaries of AI but also on businesses that remain essential regardless of how advanced the technology becomes.

Why Traditional Businesses Are Back in Favor

For more than a decade, technology and software companies dominated market leadership. Their scalability, high margins, and recurring revenue models made them attractive long-term investments.

The rise of generative AI has introduced a new challenge.

Many software companies now face questions about whether their products could eventually be replicated, automated, or replaced by increasingly sophisticated AI platforms. Investors are beginning to reassess which businesses possess sustainable competitive advantages in a world where artificial intelligence can perform tasks that once required complex software solutions.

Meanwhile, companies such as FedEx, ExxonMobil, and Coca-Cola continue to operate businesses rooted in physical activity and infrastructure. Goods still need to be transported, energy still needs to be produced, and consumer products still need to be manufactured and distributed.

As a result, these businesses are increasingly viewed as relatively insulated from the disruptive effects of AI.

Market Performance Is Supporting the Thesis

The HALO theme is not just a theoretical concept. Market performance has begun to reflect the growing interest.

Since the beginning of the year, FedEx and ExxonMobil have each gained nearly 30%, while Coca-Cola has risen approximately 17%.

At the same time, several high-profile software names, including Adobe, ServiceNow, and Salesforce, have drifted toward 52-week lows as investors reassess their long-term positioning in an AI-driven landscape.

This does not necessarily mean that software companies are destined to underperform. Rather, investors are becoming more selective as they evaluate which businesses could benefit from AI and which may eventually face greater competitive pressure because of it.

The ETF Built Around the HALO Strategy

Capitalizing on growing investor interest, Roundhill Investments recently launched the Roundhill HALO ETF (LOHA), designed specifically around this investment theme.

The fund screens large U.S. companies whose value is primarily tied to physical assets, infrastructure, transportation networks, industrial operations, and other businesses that are difficult to replicate through artificial intelligence alone.

Among its notable holdings are Cummins, AutoZone, TFI International, CSX, JB Hunt, and Lennox.

According to the fund’s managers, the objective is not to bet against AI. Instead, the strategy seeks to invest in companies that can benefit from technological progress while remaining fundamentally essential to the functioning of the economy.

For investors concerned about rising valuations across the AI ecosystem, the approach offers an alternative way to participate in a rapidly changing market environment.

Is HALO the Next Major Investment Theme?

The growing popularity of HALO reflects a broader shift in investor thinking. During the early stages of the AI boom, capital flowed primarily toward technology companies developing the tools and platforms driving the revolution.

Today, investors are beginning to explore a second phase of the trade—identifying the businesses that remain critical regardless of how far AI advances.

Supporters of the strategy argue that while artificial intelligence will transform how many industries operate, it is unlikely to eliminate the need for transportation networks, energy infrastructure, industrial manufacturing, and other foundational components of the global economy.

That distinction may prove increasingly important as markets continue to separate companies that are vulnerable to disruption from those that can thrive alongside it.

Looking Ahead

The HALO strategy is not a rejection of artificial intelligence. Instead, it represents a new way of thinking about investment opportunities in an AI-powered world.

As investors search for stability amid rapid technological change, companies with durable business models, essential infrastructure, and significant physical assets are attracting renewed attention. Whether HALO becomes a lasting market trend remains to be seen, but its recent success suggests that many investors are no longer asking only who will benefit from AI.

They are also asking which companies will remain indispensable long after the AI revolution becomes part of everyday life.