1. What are digital marketing agencies and what do they do?

Digital Marketing Agencies are also known as digital agencies, online marketing agencies and digital marketing consultancies. They specialize in developing ingenious ways to market products and services through digital media, including the Internet, mobile devices and social media networks. They offer a range of marketing services, including Search Engine Optimization (SEO), Search Engine Marketing (SEM) and Social Media Marketing (SMM).

2. What can digital marketing agencies do for your business?

Digital marketing agencies are available to help with a wide range of services, including creating a corporate website and building SEO-friendly websites, video production, graphic design, logo design, public relations, copywriting, content creation, digital advertising such as Google Ads, Facebook Ads, Instagram Ads and much more.

3. What are the benefits of digital marketing in Singapore?

Digital marketing is important in Singapore because of its large population of Internet users, who tend to be younger and more tech-savvy than citizens of other countries. The internet has become a central part of life for people who live in Singapore. In 2020, 88.5 percent of the population was using the internet; by 2025, this figure is projected to grow to more than 93 percent. Internet use in Singapore has become so widespread that it is now an inseparable part of the daily lives of its people.

4. Why should you choose to work with a digital marketing agency?

Working with a digital marketing company can help your business reach its goals faster than trying to do it all on your own. It's also a good idea to partner with a marketing agency that has experience working with both offline and online companies. They can also help you identify your ideal target audience and plan an appropriate digital strategy to reach them by recommending the digital marketing services that fit best with your budget.

5. What do digital marketing companies do?

When you work with a digital marketing agency, they'll have the necessary methodologies, resources, skills and tools to help grow your business through meaningful interactions with customers. The agency will work on digital solutions that are specific to your business needs, such as creating digital campaigns and conducting branding services.

6. What kinds of digital marketing strategies are there?

There are many kinds of digital marketing strategies, each with its own pros and cons. The Internet has enabled businesses to reach out to new audiences, so many companies use Search Engine Marketing and Search Engine Optimisation to get their sites to rank on search engines such as Google. Other digital marketing services include social media marketing and PPC (pay-per-click) advertising, in which you can advertise on social media platforms or pay to have your post appear on Facebook and other social media channels. A digital agency can help you create a social media strategy to improve your brand's presence on social media platforms. There are other types of marketing that can help you reach out to customers and prospects, such as email and content marketing. This will get your website visitors to come back for more information about your company and products or services. Last but not least, web design is one of the core Digital Marketing elements. If you want your website to leave a great impression on prospects or customers, digital marketing companies can help you optimise your design and web development.

7. What qualities should you look for when choosing a digital marketing agency?

The most effective digital marketing agencies will have in-house search engine marketing capabilities. A good digital marketing agency should be able to create websites that are optimized for search engines, manage advertising campaigns, formulate social media strategies, and provide copywritng as well as content creation services tailored to your business. Generally, the top digital marketing agencies only hire experienced strategists to work with their clients on digital marketing needs.

8. What is the cost of a typical digital marketing agency?

Depending on your budget, digital marketing agencies can cost anything from a few thousand dollars to tens of thousands of dollars per month. A digital agency can help you create a social media strategy to improve your brand's presence on social media platforms. There are other types of marketing that can help you reach out to customers and prospects, such as email and content marketing. This will get your website visitors to come back for more information about your company and products or services. Last but not least, web design is one of the core Digital Marketing elements. If you want your website to leave a great impression on prospects or customers, digital marketing companies can help you optimise your design and web development.

9. How can I find a good quality of digital marketing agency?

You can find digital marketing agencies with an extensive online presence and reviews from previous customers/clients on the Internet. This will allow you to see what sort of work they do and how well they perform. It's important for an agency to have a broad range of knowledge in all aspects of digital marketing, including SEO, SEM and social media management.

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Business

Copart Q2 FY2026 Earnings: 10 Key Takeaways on Insurance Trends, ASP Growth and Buybacks Copy

February 24, 2026

Every week brings another headline declaring that AI will obliterate the software industry. Valuations are debated, portfolio managers grow nervous, and retail investors wonder whether their technology ETFs are quietly becoming obsolete.

Most of these conversations, however, stop at vague generalisations. “AI will disrupt SaaS” is easy to say. What is harder — and far more useful — is asking the precise question: which companies, exactly, are at risk, and through which specific mechanism?

We decided to find out.

We pulled every equity holding from a major software-focused ETF — 107 companies representing over $7.6 billion in assets under management — and ran each one through five distinct AI disruption vectors. The results were simultaneously reassuring and alarming, and they carry lessons that matter well beyond this single fund.

Table of Contents

The Five Disruption Vectors We Used

Before sharing the findings, it is worth explaining our framework. Not all AI disruption is the same. A company threatened by generative AI faces a completely different challenge than one threatened by robotic automation. We evaluated each holding against these five categories:

Generative AI refers to systems that create content, code, images, and documents that previously required human creative effort or specialist software. Think of tools that generate marketing copy, design assets, or financial summaries on demand.

Agentic AI describes autonomous AI systems that plan, act, and complete multi-step tasks without human intervention. These are not chatbots answering questions — they are systems that log into software, make decisions, and execute workflows end to end.

Physical AI covers robotics, autonomous vehicles, and AI embedded in the physical world. It threatens companies whose value depends on humans physically operating machines, managing fleets, or staffing warehouses.

Automation encompasses both rule-based and AI-driven workflow automation that eliminates repetitive business processes — invoice approvals, data reconciliation, compliance reporting, and so on.

Vibe Coding is the newest and perhaps most underappreciated vector. It refers to building software by describing what you want in plain language, rather than writing code. As tools like this mature, they directly threaten any company whose product helps non-engineers build or manage applications.

The Headline Numbers

Out of 107 holdings analysed, our verdicts broke down as follows:

🔴 YES (High Replacement Risk): 7 companies — approximately 7% of holdings
🟡 PARTIAL (Meaningful Disruption Risk): 51 companies — approximately 48% of holdings
🟢 NO (Safe / Complementary / Is AI): 49 companies — approximately 46% of holdings

The most important finding is what this tells us about the fund’s construction. The top ten holdings — Microsoft, Palantir, Oracle, Salesforce, Palo Alto Networks, AppLovin, Intuit, CrowdStrike, ServiceNow, and Synopsys — together represent over 65% of total assets under management, and every single one of them scores NO. These are either AI infrastructure companies, AI platforms themselves, or deeply embedded enterprise systems that AI runs on top of rather than replaces.

In other words, the fund’s largest positions are structurally positioned as beneficiaries of AI, not casualties of it.

The 7 "YES" Holdings: Where the Real Risk Lives

These are the companies we consider to face genuine existential disruption risk. Taken together, they represent approximately $421 million in fund exposure — roughly 5.5% of total assets. That is a manageable number, but not one to ignore.

Adobe (ADBE) — $351.6M, 4.60% of fund By far the largest “YES” position and the only one that matters at scale. Adobe’s entire creative suite — Photoshop, Illustrator, Premiere, After Effects — exists to help people produce images, video, and design assets. Generative AI now does this in seconds, for free or near-free. Adobe has responded aggressively with Firefly and AI integrations, but the underlying threat is structural: the barrier to creating professional-quality visual content has essentially collapsed. The question is whether Adobe can reinvent itself as an AI platform rather than a tool suite fast enough to justify its valuation.

DocuSign (DOCU) — $28.6M, 0.37% of fund DocuSign’s core product is e-signature. Agentic AI systems can now draft contracts, negotiate terms, flag anomalies, route documents for approval, and execute signatures — all without a human opening a browser. The entire contract lifecycle that DocuSign once facilitated is becoming an automated workflow. DocuSign has pivoted toward broader contract intelligence, but the original moat is eroding quickly.

UiPath (PATH) — $14.6M, 0.19% of fund UiPath built a multibillion-dollar business by teaching software robots to replicate human actions inside other software — clicking buttons, copying data, filling forms. This is called Robotic Process Automation, or RPA. The problem is that agentic AI does everything RPA does, but smarter, with less setup, and without needing to be reprogrammed when the underlying software changes. Vibe coding further threatens UiPath’s low-code workflow builder. The company is adapting, but it is running toward a category that is collapsing beneath it.

Pegasystems (PEGA) — $13.1M, 0.17% of fund Pegasystems sells Business Process Management software and a low-code platform that lets enterprises build custom applications without extensive engineering. Both products are in the crosshairs of agentic AI and vibe coding simultaneously. When an enterprise can describe a business process to an AI agent and have it execute autonomously — or describe an application in plain English and have it built in hours — the value proposition of a low-code BPM platform diminishes substantially.

BlackLine (BL) — $5.5M, 0.07% of fund BlackLine automates the financial close process — reconciliations, journal entries, intercompany transactions. This sounds niche, but it represents a genuine disruption case study. The entire financial close workflow is, at its core, structured data matching and rule application. Agentic AI and automation are already beginning to handle these tasks end to end. BlackLine’s customers are increasingly asking whether they need dedicated software or whether their existing AI infrastructure can handle it.

Five9 (FIVN) — $4.8M, 0.06% of fund Five9 provides cloud-based contact centre software — the infrastructure that powers customer service phone lines. This is perhaps the clearest disruption story of any company in this fund. Agentic AI voice agents are not a future threat; they are already deployed at scale, handling complex customer queries, processing returns, booking appointments, and escalating appropriately. The human-staffed contact centre is being replaced in real time, and the software that managed those humans faces the same fate.

Appian (APPN) — $3.3M, 0.04% of fund Like Pegasystems, Appian sells low-code workflow automation software to enterprises. The thesis for disruption is identical: when vibe coding lets a business analyst build a workflow application by typing a description, and when agentic AI can execute that workflow autonomously, the low-code platform layer becomes redundant. Appian is the most exposed of any company in this fund relative to the confluence of disruption vectors aligned against it.

The "PARTIAL" Zone: 51 Companies to Watch

The largest category — nearly half the fund — sits in a zone of meaningful but not existential disruption. These companies are not being replaced; they are being reshaped. The degree of risk varies significantly within this group.

Higher-risk partial positions worth monitoring:

Salesforce (CRM) is building its own agentic AI layer called Agentforce, which is simultaneously its greatest opportunity and its most direct threat. If Agentforce succeeds, customers may need fewer Salesforce licences, not more. Workday (WDAY) faces similar dynamics in HR automation. ServiceNow (NOW) is a workflow automation company being threatened by more capable workflow automation technology. HubSpot (HUBS) and Freshworks (FRSH) serve smaller businesses with lighter enterprise lock-in, making them more vulnerable to AI-native alternatives.

More defensible partial positions:

Autodesk (ADSK) is deeply embedded in construction and manufacturing workflows, and while generative AI will change how engineers design, the underlying simulation and compliance infrastructure is not going away. Trimble (TRMB) provides GPS and positioning technology that physical AI systems actually depend on. Manhattan Associates (MANH) manages supply chain complexity that is increasing, not decreasing, as automation spreads.

5. Copart Competes on Economics, Not Just Fees

On the call, management stressed that fee pricing is not the main battleground.

The real differentiator is delivered economic outcome:

Higher selling prices
Faster cycle times
Reduced storage costs
Improved policyholder satisfaction

They argue these factors dwarf small fee differences between competitors.

The "NO" Zone: Why Almost Half the Fund Is Structurally Safe

The 49 holdings rated as low disruption risk share a crucial characteristic: they are either infrastructure that AI runs on, or they are AI themselves.

Cybersecurity companies — CrowdStrike (CRWD), Palo Alto Networks (PANW), Zscaler (ZS), SentinelOne (S), Fortinet (FTNT) — are not threatened by AI; they are powered by it. More AI means more attack surface, more threat vectors, and more need for security infrastructure. These companies are net beneficiaries.

Data and cloud infrastructure — Oracle (ORCL), Datadog (DDOG), Elastic (ESTC), Confluent (CFLT), Nutanix (NTNX) — are the plumbing that AI systems require. You cannot run a large language model without databases, observability, and data streaming infrastructure.

Chip design EDA tools — Synopsys (SNPS) and Cadence (CDNS) — are perhaps the most protected of all. Designing the chips that power AI requires extraordinarily specialised software with decades of embedded knowledge and regulatory certification. Generative AI cannot replace them; it relies on them.

AI-native companies — Palantir (PLTR), C3.ai (AI), SoundHound (SOUN), Zeta Global (ZETA), CCC Intelligent Solutions (CCC), Aurora Innovation (AUR) — are the AI. The question of whether AI will disrupt them is somewhat circular. The real question for investors is whether they will win in their respective AI markets, which is a different analysis entirely.

Deeply regulated vertical software — Tyler Technologies (TYL) serves government agencies, Guidewire (GWRE) serves insurance carriers, nCino (NCNO) serves banks, and Blackbaud (BLKB) serves nonprofits. These companies have compliance moats, integration depth, and switching costs that make disruption a decade-long process at minimum.

What Each AI Vector Threatens Most

Looking across the entire fund, here is where each disruption vector does its most concentrated damage:

Generative AI hits creative and content software hardest. Adobe is the obvious casualty, but Electronic Arts (EA) and Take-Two Interactive (TTWO) also face meaningful pressure as AI generates game assets, dialogue, and even entire game worlds. Snap (SNAP) is threatened as AI-generated content reduces the premium on human-created content.

Agentic AI is the broadest and most powerful vector. It threatens DocuSign, UiPath, Pegasystems, Five9, and Appian at the existential level, and exerts meaningful pressure on Salesforce, Workday, ServiceNow, HubSpot, Freshworks, and virtually every company that automates a human workflow on behalf of a business.

Physical AI — robotics and autonomous systems — threatens fleet management software (Samsara), supply chain software (Manhattan Associates), point-of-sale systems (NCR Voyix, Lightspeed), and smart home platforms (Alarm.com) as the physical world becomes increasingly autonomous.

Automation is the most mature vector and its damage is already reflected in valuations. The clearest targets are accounts payable and financial workflow companies like Bill Holdings (BILL), BlackLine (BL), Vertex Inc (VERX), and OneStream (OS).

Vibe coding is the most underappreciated long-term threat. When software can be built through conversation, the entire market for low-code platforms, no-code tools, and developer workflow software shrinks. The most exposed companies are UiPath, Pegasystems, Appian, and GitLab — though even Atlassian (TEAM) and ServiceNow face pressure as the volume of software tickets and workflow configurations required to build applications drops.

Here's the full analysis now with Generative AI added as its own distinct disruption vector:

Ticker	Company	Core Product	Gen AI	Agentic AI	Physical AI	Automation	Vibe Coding	OVERALL
MSFT	Microsoft	OS, Cloud, Office, AI	NO	NO	NO	NO	NO	NO
PLTR	Palantir	AI analytics platform	NO	NO	NO	NO	NO	NO
ORCL	Oracle	Database, ERP, Cloud	NO	NO	NO	NO	NO	NO
CRM	Salesforce	CRM platform	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
PANW	Palo Alto	Cybersecurity platform	NO	NO	NO	NO	NO	NO
ADBE	Adobe	Creative & marketing tools	YES	NO	NO	NO	NO	YES
APP	AppLovin	Mobile ad optimization	NO	NO	NO	NO	NO	NO
INTU	Intuit	Tax & accounting	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
CRWD	CrowdStrike	Endpoint security	NO	NO	NO	NO	NO	NO
NOW	ServiceNow	IT workflow automation	NO	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
SNPS	Synopsys	EDA chip design	NO	NO	NO	NO	NO	NO
CDNS	Cadence	EDA chip design	NO	NO	NO	NO	NO	NO
FTNT	Fortinet	Network security hardware	NO	NO	NO	NO	NO	NO
ADSK	Autodesk	CAD/engineering design	PARTIAL	NO	PARTIAL	NO	NO	PARTIAL
EA	Electronic Arts	Video games	PARTIAL	NO	NO	NO	PARTIAL	PARTIAL
ROP	Roper Technologies	Niche vertical software	NO	NO	NO	NO	NO	NO
TTWO	Take-Two Interactive	Video games	PARTIAL	NO	NO	NO	PARTIAL	PARTIAL
DDOG	Datadog	Cloud observability	NO	NO	NO	NO	NO	NO
MSTR	Strategy Inc	Bitcoin treasury	NO	NO	NO	NO	NO	NO
FICO	Fair Isaac	Credit scoring models	PARTIAL	NO	NO	NO	NO	PARTIAL
WDAY	Workday	HR & finance software	NO	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
ZM	Zoom	Video communications	PARTIAL	PARTIAL	NO	NO	NO	PARTIAL
PTC	PTC Inc	IoT & industrial software	NO	NO	PARTIAL	NO	NO	PARTIAL
TRMB	Trimble	GPS & construction tech	NO	NO	NO	NO	NO	NO
ZS	Zscaler	Cloud security (zero trust)	NO	NO	NO	NO	NO	NO
TYL	Tyler Technologies	Government software	NO	NO	NO	NO	NO	NO
GEN	Gen Digital	Consumer antivirus	NO	NO	NO	NO	NO	PARTIAL
TEAM	Atlassian	Jira, Confluence	NO	PARTIAL	NO	NO	PARTIAL	PARTIAL
HUBS	HubSpot	Marketing & CRM	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
GWRE	Guidewire	Insurance software	NO	NO	NO	NO	NO	NO
DT	Dynatrace	AI observability platform	NO	NO	NO	NO	NO	NO
NTNX	Nutanix	Hybrid cloud infra	NO	NO	NO	NO	NO	NO
CFLT	Confluent	Data streaming (Kafka)	NO	NO	NO	NO	NO	NO
IDCC	InterDigital	Wireless tech patents	NO	NO	NO	NO	NO	NO
IOT	Samsara	Fleet & operations IoT	NO	NO	PARTIAL	PARTIAL	NO	PARTIAL
DOCU	DocuSign	E-signature & contracts	PARTIAL	YES	NO	YES	NO	YES
MANH	Manhattan Associates	Supply chain software	NO	PARTIAL	PARTIAL	PARTIAL	NO	PARTIAL
RBRK	Rubrik	Data security & backup	NO	NO	NO	NO	NO	NO
CWAN	Clearwater Analytics	Investment analytics	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
QBTS	D-Wave Quantum	Quantum computing	NO	NO	NO	NO	NO	NO
OTEX	Open Text	Content management (ECM)	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
U	Unity Software	Game & simulation engine	NO	NO	NO	NO	NO	NO
PCOR	Procore	Construction management	NO	PARTIAL	PARTIAL	PARTIAL	PARTIAL	PARTIAL
AUR	Aurora Innovation	Autonomous trucking	NO	NO	NO	NO	NO	NO
SNAP	Snap	Social media / AR camera	PARTIAL	NO	NO	NO	NO	PARTIAL
BMNR	BitMine Immersion	Bitcoin mining hardware	NO	NO	NO	NO	NO	NO
DSGX	Descartes Systems	Logistics & routing software	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
CORZ	Core Scientific	Bitcoin mining & HPC	NO	NO	NO	NO	NO	NO
HUT	Hut Corp	Bitcoin mining	NO	NO	NO	NO	NO	NO
WULF	TeraWulf	Bitcoin mining	NO	NO	NO	NO	NO	NO
RIOT	Riot Platforms	Bitcoin mining	NO	NO	NO	NO	NO	NO
ESTC	Elastic NV	Search & data analytics	NO	NO	NO	NO	NO	NO
BSY	Bentley Systems	Infrastructure engineering	PARTIAL	NO	PARTIAL	NO	PARTIAL	PARTIAL
CIFR	Cipher Mining	Bitcoin mining	NO	NO	NO	NO	NO	NO
PATH	UiPath	RPA automation	NO	YES	NO	YES	YES	YES
DBX	Dropbox	Cloud file storage	PARTIAL	NO	NO	NO	PARTIAL	PARTIAL
S	SentinelOne	AI endpoint security	NO	NO	NO	NO	NO	NO
ACIW	ACI Worldwide	Payment processing	NO	NO	NO	NO	NO	NO
DLB	Dolby	Audio/visual tech & IP	NO	NO	NO	NO	NO	NO
PEGA	Pegasystems	BPM & low-code platform	NO	YES	NO	YES	YES	YES
APPF	AppFolio	Property management	PARTIAL	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
CVLT	Commvault	Data backup & recovery	NO	NO	NO	NO	NO	NO
BILL	Bill Holdings	SMB payments & AP/AR	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
LIF	Life360	Family safety & location	NO	NO	NO	NO	NO	NO
TTAN	ServiceTitan	Field service management	NO	PARTIAL	PARTIAL	PARTIAL	NO	PARTIAL
GTLB	GitLab	DevOps platform	NO	PARTIAL	NO	NO	YES	PARTIAL
CRCL	Circle Internet	USDC stablecoin & payments	NO	NO	NO	NO	NO	NO
BOX	Box Inc	Cloud content management	PARTIAL	NO	NO	NO	PARTIAL	PARTIAL
QLYS	Qualys	Cloud security & compliance	NO	NO	NO	NO	NO	NO
SOUN	SoundHound AI	Voice AI platform	NO	NO	NO	NO	NO	NO
WK	Workiva	Financial reporting platform	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
MARA	MARA Holdings	Bitcoin mining	NO	NO	NO	NO	NO	NO
QTWO	Q2 Holdings	Digital banking software	NO	NO	NO	NO	NO	NO
ZETA	Zeta Global	AI marketing platform	NO	NO	NO	NO	NO	NO
YOU	Clear Secure	Biometric identity (TSA)	NO	NO	PARTIAL	NO	NO	PARTIAL
CCC	CCC Intelligent Solutions	Auto insurance AI	NO	NO	NO	NO	NO	NO
CLSK	CleanSpark	Bitcoin mining	NO	NO	NO	NO	NO	NO
RNG	RingCentral	Cloud communications	PARTIAL	PARTIAL	NO	NO	PARTIAL	PARTIAL
TDC	Teradata	Data warehouse & analytics	PARTIAL	NO	NO	NO	NO	PARTIAL
VRNS	Varonis	Data security & governance	NO	NO	NO	NO	NO	NO
ALRM	Alarm.com	Smart home security	NO	NO	PARTIAL	PARTIAL	NO	PARTIAL
KVYO	Klaviyo	Email & SMS marketing	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
TENB	Tenable	Vulnerability management	NO	NO	NO	NO	NO	NO
SPSC	SPS Commerce	EDI & supply chain	NO	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
ADEA	Adeia	Media tech IP licensing	NO	NO	NO	NO	NO	NO
OS	OneStream	Corporate financial planning	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
AGYS	Agilysys	Hospitality mgmt software	NO	PARTIAL	PARTIAL	PARTIAL	NO	PARTIAL
BB	BlackBerry	IoT & embedded security	NO	NO	NO	NO	NO	NO
PRGS	Progress Software	App dev & data platform	NO	NO	NO	NO	PARTIAL	PARTIAL
BLKB	Blackbaud	Nonprofit sector software	NO	NO	NO	NO	NO	NO
BL	BlackLine	Accounting automation	NO	YES	NO	YES	NO	YES
RAMP	LiveRamp	Data connectivity & identity	NO	NO	NO	NO	NO	NO
NCNO	nCino	Banking cloud platform	NO	NO	NO	NO	NO	NO
NN	NextNav	3D GPS & positioning	NO	NO	NO	NO	NO	NO
FRSH	Freshworks	CRM & helpdesk software	PARTIAL	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
AVPT	AvePoint	Microsoft 365 data mgmt	NO	NO	NO	NO	PARTIAL	PARTIAL
FIVN	Five9	Cloud contact center	NO	YES	NO	YES	NO	YES
BRZE	Braze	Customer engagement platform	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
ATEN	A10 Networks	App delivery networking	NO	NO	NO	NO	NO	NO
ALKT	Alkami	Digital banking platform	NO	NO	NO	NO	NO	NO
VYX	NCR Voyix	POS & retail tech	NO	NO	PARTIAL	PARTIAL	NO	PARTIAL
AI	C3.ai	Enterprise AI platform	NO	NO	NO	NO	NO	NO
LSPD	Lightspeed Commerce	Retail & restaurant POS	NO	NO	PARTIAL	PARTIAL	NO	PARTIAL
INTA	Intapp	Professional services software	PARTIAL	PARTIAL	NO	NO	PARTIAL	PARTIAL
APPN	Appian	Low-code BPM platform	NO	YES	NO	YES	YES	YES
VERX	Vertex Inc	Tax compliance software	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
PAR	PAR Technology	Restaurant tech platform	NO	PARTIAL	PARTIAL	PARTIAL	NO	PARTIAL
CXM	Sprinklr	Social media management	PARTIAL	PARTIAL	NO	PARTIAL	NO	PARTIAL
ASAN	Asana	Work management platform	NO	PARTIAL	NO	PARTIAL	PARTIAL	PARTIAL
PD	PagerDuty	IT incident management	NO	PARTIAL	NO	PARTIAL	NO	PARTIAL
SEMR	Semrush	SEO & digital marketing	PARTIAL	PARTIAL	NO	NO	NO	PARTIAL
RPD	Rapid7	Cybersecurity analytics	NO	NO	NO	NO	NO	NO
NABL	N-able	Managed IT services	NO	NO	NO	NO	NO	NO

Final Scorecard

Verdict	Count	% of Software Holdings
YES — High replacement risk	7	~7%
PARTIAL — Meaningful disruption risk	51	~48%
NO — Safe / Complementary / Is AI	49	~46%

The 7 “YES” Holdings — Highest Risk

Ticker	Company	Market Value	Weight	Primary Threat Vector
ADBE	Adobe	$351.6M	4.60%	Generative AI — image, video, copy generation commoditizes creative tools
DOCU	DocuSign	$28.6M	0.37%	Agentic AI + Automation — contracts drafted, negotiated & executed autonomously
PATH	UiPath	$14.6M	0.19%	Agentic AI + Vibe Coding — RPA bots replaced by smarter AI agents
PEGA	Pegasystems	$13.1M	0.17%	Agentic AI + Vibe Coding — BPM/low-code replaced by natural language
BL	BlackLine	$5.5M	0.07%	Agentic AI + Automation — financial close fully automatable
FIVN	Five9	$4.8M	0.06%	Agentic AI — voice agents already replacing human call centers today
APPN	Appian	$3.3M	0.04%	Agentic AI + Vibe Coding — low-code BPM made obsolete by AI coding

Combined “YES” exposure = ~$421M or ~5.5% of total fund value — relatively contained given the fund is ~$7.6B total.

What Each Disruption Vector Threatens Most

Vector	Primary Targets in This Fund
Generative AI	ADBE (creative tools), EA/TTWO (game assets), SNAP (UGC platforms), TDC (legacy analytics)
Agentic AI	DOCU, PATH, PEGA, FIVN, APPN, BL, NOW, WDAY, FRSH, CRM
Physical AI	IOT/TRMB (fleet/positioning), MANH (warehousing), VYX/LSPD (cashierless retail), AUR (already IS physical AI)
Automation	BILL, VERX, SPSC, OS, BL, KVYO, PD
Vibe Coding	PATH, PEGA, APPN, GTLB, NOW, TEAM, PRGS

Bottom Line for the Fund

The fund is relatively well-constructed against AI disruption — the top 10 holdings (65%+ of AUM) are all NO, meaning Microsoft, Palantir, Oracle, Salesforce, Palo Alto, AppLovin, Intuit, CrowdStrike, ServiceNow, and Synopsys are either AI infrastructure players, AI platforms themselves, or deeply embedded enterprise systems that AI runs on top of rather than replaces.

The Bottom Line for Investors

This fund is better constructed for an AI world than most ETF investors probably realise. The headline risk — that AI will destroy software companies — is substantially concentrated in a handful of positions that together represent less than 6% of total assets. The largest holdings are genuinely well-positioned.

That said, the 48% in the “partial disruption” category deserves active monitoring. The distinction between a partial-disruption company that successfully pivots and one that slowly loses relevance is not always visible in current financials — it shows up over three to five years in net revenue retention, pricing power, and customer expansion rates.

The most important mental model for evaluating this fund — or any software portfolio in the AI era — is not “will AI replace this software?” but rather “does this software need to exist for AI to work?” Companies that answer yes to the second question are among the most durable technology investments available. Companies that answer yes to the first face a different future entirely.

10. Long-Term Capacity and Land Strategy Remains a Focus

Compared to a decade ago, Copart is in a much stronger land ownership position.

They now operate dedicated catastrophic facilities and maintain hundreds of acres reserved for storm activity.

Management emphasized that land development has long lead times, so they continue disciplined investment to ensure capacity remains ahead of demand over a 10-year horizon.

The simple takeaway

While Q2 showed lower year-over-year revenue and earnings, the earnings call reinforced several structural strengths:

Rising total loss frequency
Strong pricing power
Durable competitive moats
Massive liquidity
Disciplined capital allocation

The quarter reflects insurance cycle headwinds more than business model deterioration. The long-term thesis remains centered on liquidity, scale, and structural total loss growth.

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