Artificial intelligence (AI) has revolutionized how we live and work, and it is now poised to transform the investing world. As technology continues to evolve and mature, investors are increasingly turning to AI-focused ETFs to gain exposure to this dynamic and rapidly growing sector.
Global X AI-Focused ETFs
One of the most popular AI-focused ETFs currently available is the $2 billion Global X Robotics & Artificial Intelligence ETF (BOTZ), which has consistently delivered strong returns to investors. One of the fund’s top holdings is NVIDIA Corporation, which accounts for 9.62% of its portfolio. Over the past year, BOTZ has generated a return of 18.41%, making it an attractive option for investors looking for exposure to the AI sector.
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Another AI-focused ETF that has been gaining popularity is the Global X Artificial Intelligence & Technology ETF (AIQ), which has 67.26% of its holdings in the U.S. The fund has seen strong inflows over the past month, driving its AUM up to nearly $200 million. Like BOTZ, AIQ holds NVIDIA Corporation, which accounts for 4.34% of its portfolio. Over the past year, AIQ has generated a return of 18.62%. This makes it another strong performer in the AI-focused ETF space.
More AI-Focused ETFs
Investors looking for even more targeted exposure to the AI sector may want to consider the ROBO Global Artificial Intelligence ETF (THNQ), which focuses specifically on companies involved in the development and deployment of AI technology. NVIDIA Corporation is again a top holding, accounting for 2.17% of the fund’s portfolio. Over the past year, THNQ has generated a return of 17.80%. This makes it a compelling option for investors looking for a more focused approach to AI investing.
For investors seeking an actively managed ETF, the TrueShares Technology, AI & Deep Learning ETF (LRNZ) may be worth considering. This ETF invests in companies involved in AI and deep learning technologies, with NVIDIA Corporation. It accounts for 7.36% of its portfolio. Over the past year, LRNZ has generated a return of 12.94%, a solid performance in the AI ETF space.
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Finally, the Franklin Intelligent Machines ETF (IQM) is another actively managed AI-focused ETF that has been generating buzz among investors. Like the other ETFs discussed here, IQM’s top holding is NVIDIA Corporation, which accounts for 7.92% of its portfolio. Over the past year, IQM has generated a return of 24.36%. This makes it one of the top performers in the AI-driven ETF space.
Conclusion
AI-focused ETFs such as BOTZ, AIQ, THNQ, LRNZ, and IQM offer investors a unique opportunity to gain exposure to a rapidly growing industry in a cost-effective and diversified manner. Investing in this space carries risks, but those who are willing to take a long-term view may reap significant rewards. As AI technology continues to evolve and transform multiple industries, investing in AI-focused ETFs may prove to be a smart move for modern investors looking to stay ahead of the curve.
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