Roundhill Investments is preparing to launch the Roundhill Photonics & Optics ETF, an actively managed fund trading under the ticker LYTE. The product targets the global photonics and optical communications industry and is built around rising demand for optical connectivity tied to AI data center infrastructure.
LYTE to list on Cboe BZX with a 0.65% fee
According to ABMedia, the Roundhill Photonics & Optics ETF will trade on the Cboe BZX exchange under the symbol LYTE. It is structured as an actively managed ETF with a total expense ratio of 0.65% and is expected to list on Aug. 6, 2026, U.S. time.
The fund’s stock selection is centered on core companies across the global optical communications and photonics supply chain. Its portfolio is tilted toward a small group of leading names rather than a wide spread of peripheral technology stocks.
Top holdings show heavy concentration in a few names
Based on the latest disclosed holdings, the top 10 positions in LYTE, ranked by weight, are as follows. The weights may change with market prices and are provided for reference:
- Lumentum (LITE): 15.42%
- Coherent (COHR): 15.23%
- Eoptolink Technology: 14.59%
- Zhongji Innolight: 14.22%
- Ciena (CIEN): 13.73%
- TFC Communication: 7.90%
- Yuanjie Semiconductor Technology: 5.35%
- Accelink Technologies: 4.74%
- Fabrinet (FN): 4.00%
- Applied Optoelectronics (AAOI): 2.14%
Lumentum and Coherent, two U.S. optical communications component makers, together account for more than 30% of the portfolio and stand as the fund’s two largest single positions. At the same time, China-based optical communications module suppliers including Eoptolink Technology, Zhongji Innolight, TFC Communication, Yuanjie Semiconductor Technology, and Accelink Technologies make up a combined 46.8%.
The holding structure shows that LYTE spans both U.S. and Chinese optical supply chain leaders. It is also highly concentrated, with just 10 names covering most of the fund’s weight.
Roundhill highlights three pillars behind the strategy
Roundhill has outlined three main ideas behind LYTE.
Light over copper
As AI data traffic climbs, Roundhill says optical links are gradually replacing traditional copper cabling in order to deliver faster and more energy-efficient data transmission.
Structural bottleneck
Roundhill also argues that optical connectivity has become a key bottleneck in AI infrastructure buildouts. As bandwidth demand expands and data flows increase, companies in the related supply chain could benefit.
Pure play exposure
The fund focuses on core global photonics and optical communications leaders rather than spreading assets across a broader set of adjacent technology names. The goal is to provide more direct thematic exposure.
A thematic ETF with higher concentration
ABMedia described LYTE as a thematic ETF with a clear direction. Its holdings are concentrated in a small number of photonics and optical communications leaders, which may leave it more volatile than large index ETFs with broader diversification.
Because the fund is actively managed, portfolio decisions by the manager will directly affect performance. ABMedia added that the optical communications segment is itself a higher-volatility area, making this type of ETF more suitable for investors who agree with the view that AI infrastructure spending will lift demand for optical connectivity and who can tolerate larger price swings.