Whether society wants it or not, robotics, artificial intelligence (AI), machine learning, or any other type of disruptive technology is the next wave of innovation. For investors who missed out on the serendipitous run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, they can look to capitalize on disruptive tech options in 2019.
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.
“The AR/VR space has extended far beyond its roots in gaming to applications in healthcare, retail, manufacturing, entertainment and more,” said Matthew Bielski, founder and CEO of Defiance ETFs.
In early 2018, technology mogul Elon Musk, founder of SpaceX and co-founder of Tesla, sat down with the Artificial Intelligence Channel to discuss his thoughts on AI as it relates to his neurotechnology company Neuralink. Musk wryly responded to the notion that a lot of experts in the AI space do not share his views on the subject.
“Fools,” retorted Musk. “They (smart people) don’t like the idea that a machine could be way smarter than them so they discount the idea, which is fundamentally flawed. It’s the wishful thinking situation.”
In fact, Musk told the World Government Summit in a February meeting last year that humans need to avoid becoming redundant as technologies like AI become a common reality. If the trend towards disruptive technology is indeed the proverbial wave of the future, then investors should also take advantage through their exchange-traded fund (ETF) investments.
ETFs to consider:
- ARK Innovation ETF (NYSEArca: ARKK)
- Global X Robotics & Artificial Intelligence Thematic ETF (NasdaqGM: BOTZ)
- ROBO Global Robotics & Automation Index ETF (NYSEArca: ROBO)
- First Trust Nasdaq Artificial Intelligence and Robotics ETF (NasdaqGM: ROBT)
- iShares Robotics and Artificial Intelligence ETF (NYSEArca: IRBO)
- AI Powered Equity ETF (NYSE Arca: AIEQ)
- Innovator Loup Frontier Tech ETF (NYSEArca: LOUP)
- ALPS Disruptive Technologies ETF (Cboe: DTEC)
- Robotics & AI Bull 3X ETF (NYSEArca: UBOT)
- Defiance Future Tech ETF (NYSE: AUGR)
Industry Experts Discuss AI in Finance
AI, in particular, is gaining widespread attention for its ability to disrupt a variety of sectors. In the financial space, AI can be used to perform risk-reward analysis, fraud detection and advisory services, but how does the technology specifically serve ETFs?
ETF Trends Publisher Tom Lydon spoke with Yasmin Dahya and Joe Staines, of J.P. Morgan Asset Management on how this transformative technology is being utilized by ETFs.
Click to open the podcast player in a new window:
Evolution Versus Revolution of AI
Staines cites two ways that AI can materially impact ETFs–the first being the innovations that currently appear in today’s technology, such as those implemented by tech giants like Google and Amazon, will make their way into ETFs. Second, the implementation of AI can be actively incorporated into daily activities with respect to portfolio management.
“Everything that technology has done as a whole to investing as a sector over the last few decades, we’re going to see the same sort of innovative impact from machine learning and AI,” said Staines.