Artificial intelligence (AI) has been at the forefront of the 2023 market rally, offering investors long-term growth opportunity as well as short-term trading opportunities. For the latter, consider a pair of leveraged exchange traded funds (ETFs) from Direxion Investments.
As a single-stock ETF option, consider giving Google a closer look, as the search engine giant looks to compete with its big tech peers for AI platform dominance. For additional leverage to maximize profits, traders can look specifically at the Direxion Daily GOOGL Bull 1.5X Shares (GGLL).
GGLL gives traders an extra 50% exposure to play off their notions on more bullishness ahead for Google. As mentioned, while Google can offer short-term trading opportunities specifically for traders, its focus on AI can also make it a viable long-term investment for buy-and-hold investors.
“Arguably, Alphabet is the stock to own if you want top-tier AI exposure, given AI has been a top focus of the company for many years – even decades! It’s been investing and innovating on the AI front since well before ChatGPT launched nearly a year ago,” wrote Joey Frenette for Barchart. “The way I see it, Alphabet is playing the long game with AI, while many other tech companies are just beginning to play catch up.”
Broad Play on AI
Rather than use single-stock ETFs, traders may want a more broad play on AI. Accordingly, one Direxion fund worth noting is the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).
With its double dose of leverage, only seasoned traders should use this product. UBOT seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index aims to provide exposure to exchange-listed companies in developed markets expected to benefit from the adoption of robotics and/or AI.
Top 10 holdings in UBOT include names like Nvidia, Intuitive Surgical, and ABB Ltd. Artificial intelligence is no longer in the realm of just the technology sector. It’s permeating other sectors like healthcare and manufacturing, giving investors a dose of diversification now that it’s being used in a variety of ways.
“The rise of artificial intelligence has created growing excitement and much debate about its potential to revolutionize entire industries,” the U.S. Government Accountability Office said. “At its best, AI could improve medical diagnosis, identify potential national security threats more quickly, and solve crimes.”
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