Get Real Smart Gains with This Artificial Intelligence ETF

Disruptive technology like artificial intelligence is driving the next level of tech innovation amid the coronavirus pandemic and will continue to do so even after a return to normalcy. In order to capitalize on this trend and reap smart gains, exchange-traded fund (ETF) investors may want to give Global X Artificial Intelligence & Technology ETF (AIQ) a look.

AIQ seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Artificial Intelligence and Big Data Index. The fund invests at least 80% of its total assets in the securities of the underlying index, which is designed to track the performance of companies involved in the development and utilization of artificial intelligence and big data.

AIQ offers investors:

  • High Growth Potential: AIQ enables investors to access high growth potential through companies involved in the development and utilization of artificial intelligence and big data technologies.
  • Unconstrained Approach: AIQ’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF Efficiency: In a single trade, AIQ delivers access to dozens of companies with exposure to artificial intelligence and big data theme.

Despite the coronavirus pandemic, AIQ is having a stellar year with a 24% gain thus far in 2020, according to Yahoo Finance performance numbers. The top 10 holdings (as of July 23) includes familiar domestic names like Amazon and Netflix, but also international giants like Tencent Holdings and Alibaba for that added diversification.

Companies like Amazon are furthering their web-based services by utilizing disruptive tech like artificial intelligence. Amazon Web Services (AWS) uses AI tech to help build “sophisticated applications with increased flexibility, scalability and reliability,” per the AWS website.

AIQ Chart

AIQ data by YCharts

Continuously Evolving Technology

AI isn’t a static technological advancement as more research and development is showing that its use is continuously evolving. For example, per an Independent report, researchers have already “achieved a breakthrough in the development of artificial intelligence by using light instead of electricity to perform computations.”

“The new approach significantly improves both the speed and efficiency of machine learning neural networks – a form of AI that aims to replicate the functions performed by a human brain in order to teach itself a task without supervision,” the report noted.

“We found that integrated photonic platforms that integrate efficient optical memory can obtain the same operations as a tensor processing unit, but they consume a fraction of the power and have higher throughput,” said Mario Miscuglio, one of the authors in a paper outlining the research, which was published in Applied Physics Reviews. “When opportunely trained, [the platforms]can be used for performing interference at the speed of light.”

For more market trends, visit ETF Trends.