AI has been one of the most exciting market themes over the last several weeks, and that extends to AI ETFs. ChatGPT’s arrival on the scene ignited interest in AI not only as a harbinger of other chatbots, but as a source of alpha in other industries. Of course, there are differences between ETFs that invest in firms benefiting from AI and ETFs that invest in AI development. The AI Innovation ETF WTAI fits the latter, and is sending up a strong technical buy signal.
See more: “Artificial Intelligence ETFs, or ETFs Powered by Artificial Intelligence?”
WTAI, the WisdomTree Artificial Intelligence and Innovation Fund, tracks the WisdomTree Artificial Intelligence & Innovation Index. That index includes global high-growth firms that make at least 50% of revenue from AI and innovation work. That includes firms in semiconductors, hardware, machine learning, and more, with an ESG screen.
So far, that has helped take WTAI to a new level of AUM over the last few weeks. In fact, WTAI actually saw its AUM more than double over the week ending June 2nd. The AI innovation ETF added just about $30 million according to LOGICLY in that time, suggesting WTAI has been a popular choice for the AI curious investor.
AI Innovation ETF’s Tech Chart
Taken together, now could be a good time to consider an AI ETF as markets look to ride AI innovation. WTAI hasn’t just ridden big AUM jumps — its price has risen significantly over both its 50 and 200-day Simple Moving Averages (SMAs). WTAI’s price sat at more than $19.5 as of Wednesday, above its $17.09 50-day SMA and its $15.93 200-day SMA.
AI Innovation ETF WTAI’s price has risen significantly over its SMAs
Those factors suggest some significant momentum, with WTAI producing on the back of it for its investors. WTAI has returned 12.7% over the last month per LOGICLY data. Overall, AI innovation ETF watchers should add WTAI to their shortlists.
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