Investing
Published: July 1, 2024 2:20 pm
Picking the individual winners of the burgeoning artificial intelligence (AI) race is no simple task. But one exchange-traded fund (ETF) that provides investors with exposure to a basket of AI stocks could be the solution.
While many investors struck gold by purchasing shares of NVDIA (NASDAQ: NVDA) before the chipmakers stock took off last year, the AI-adjacent company is more of the exception than the rule.
Pure play AI companies, on the other hand, have had less predictable successes, with some like C3.ai (NYSE: AI) seeing precipitous rises and falls. C3.ai, which produces AI applications for other enterprises, saw its stock surge to $161 per share by late 2020. At the time of writing, shares of the company are now trading for $28.96.
Forecasts suggest that the global AI market could increase exponentially by the early part of the next decade. By some analysts estimates, that growth could be as much as 300 times its 2022 valuation of $39 billion, which would translate to an astounding $1.3 trillion by 2032.
But how do investors identify the likely winners? Rather than picking one or two companies operating in the AI space and simply wishing for the best, ETFs with holdings spread across all facets of the AI industry allow investors to gain exposure to the trend without overexposing themselves to any individual holding.
In this way, not only are these ETFs providing broad exposure to AI with companies offering varying levels of involvement to the technology, but in doing so, these funds are simultaneously reducing overall risk exposure.
And just as ETFs go, the options for ones leveraged to the AI industry are bountiful. However, just like the stocks they hold, not all ETFs are created equally.
There are no fewer than 38 AI-themed ETFs currently trading on the major exchanges in the U.S. Some offer equal weighting, some prefer heavier allocations to the Magnificent Seven stocks. Some are actively managed with portfolio positions constantly shuffled.
They vary considerably by size, too, with some having assets under management (AUM) as low as $532,360 and others reaching as high as $2.72 billion.
But when it comes to finding a fund with the best combination of high growth potential, Big Tech names, diverse AI industry exposure, significant AUM coupled with a modest expense ratio, one ETF in particular takes the cake.
Enter the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ), which has posted an eye-catching 138% gain since its inception in May 2018 and has gained over 17% so far in 2024. According to Global Xs website, the ETF has net assets of $2.08 billion and a total expense ratio of 0.68%.
And while its size and per share appreciation have been impressive so far, it is the funds holdings that should garner a lot of attention. By industry, AIQ spans packaged software, semiconductors, internet software and services, information technology services, telecommunications equipment, internet retail, and industrial conglomerates.
That breadth is expansive, but looking at the names among its top weighted holdings provides more insight into why this ETF is an AI powerhouse:
Of course, those are not all of AIQs holdings, but they are the big names with some of the heaviest weightings. And looking at that list, you can see why the AI ETF was capable of producing such enormous gains for shareholders since it debuted in 2018.
As AI expands out of its earliest phase, when it was constricted to pure play stocks, cloud services, and data centers, the technology is now finding its way into streaming services (Netflix), e-commerce (Alibaba), customer relationship management (Salesforce), and numerous other facets of the economy.
Rather than hoping any one of the aforementioned companies emerges as the biggest winner of the next phase of AI implementation, investing in a fund like the Global X Artificial Intelligence & Technology ETF can provide investors with the best of broad exposure and reduced risk.
If you want your portfolio to pay you cash like clockwork, its time to stop blindly following conventional wisdom like relying on Dividend Aristocrats.
Theres a better option, and we want to show you. Were offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside.
If youre tired of feeling one step behind in this market, this free report is a must-read for you.
Thank you for reading! Have some feedback for us? Contact the 24/7 Wall St. editorial team.
More here:
This Is My Top Artificial Intelligence (AI) ETF to Buy Right Now - 24/7 Wall St.
- What is Artificial Intelligence? How Does AI Work? | Built In [Last Updated On: September 5th, 2019] [Originally Added On: September 5th, 2019]
- Artificial Intelligence What it is and why it matters | SAS [Last Updated On: September 5th, 2019] [Originally Added On: September 5th, 2019]
- artificial intelligence | Definition, Examples, and ... [Last Updated On: September 5th, 2019] [Originally Added On: September 5th, 2019]
- Benefits & Risks of Artificial Intelligence - Future of ... [Last Updated On: September 5th, 2019] [Originally Added On: September 5th, 2019]
- What is AI (artificial intelligence)? - Definition from ... [Last Updated On: September 11th, 2019] [Originally Added On: September 11th, 2019]
- What is Artificial Intelligence (AI)? ... - Techopedia [Last Updated On: September 13th, 2019] [Originally Added On: September 13th, 2019]
- 9 Powerful Examples of Artificial Intelligence in Use ... [Last Updated On: September 18th, 2019] [Originally Added On: September 18th, 2019]
- What's the Difference Between Robotics and Artificial ... [Last Updated On: September 18th, 2019] [Originally Added On: September 18th, 2019]
- The Impact of Artificial Intelligence - Widespread Job Losses [Last Updated On: September 18th, 2019] [Originally Added On: September 18th, 2019]
- Artificial Intelligence & the Pharma Industry: What's Next ... [Last Updated On: September 18th, 2019] [Originally Added On: September 18th, 2019]
- Artificial Intelligence | GE Research [Last Updated On: September 18th, 2019] [Originally Added On: September 18th, 2019]
- A.I. Artificial Intelligence (2001) - IMDb [Last Updated On: October 5th, 2019] [Originally Added On: October 5th, 2019]
- 10 Best Artificial Intelligence Course & Certification [2019 ... [Last Updated On: October 15th, 2019] [Originally Added On: October 15th, 2019]
- Artificial Intelligence in Healthcare: the future is amazing ... [Last Updated On: October 15th, 2019] [Originally Added On: October 15th, 2019]
- Will Artificial Intelligence Help Resolve the Food Crisis? - Inter Press Service [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- Two-thirds of employees would trust a robot boss more than a real one - World Economic Forum [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- UofL partners with industry experts to launch Artificial Intelligence Innovation Consortium Lane Report | Kentucky Business & Economic News - The... [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- China Sees Surge of Edtech Investments With Focus on Artificial Intelligence - Karma [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- NIST researchers use artificial intelligence for quality control of stem cell-derived tissues - National Institutes of Health [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- Indiana University Touts Big Red 200 and Artificial Intelligence at SC19 - HPCwire [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- One way for the Pentagon to prove it's serious about artificial intelligence - C4ISRNet [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- Artificial Intelligence Will Enable the Future, Blockchain Will Secure It - Cointelegraph [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- Artificial intelligence has become a driving force in everyday life, says LivePerson CEO - CNBC [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- 4 Reasons to Use Artificial Intelligence in Your Next Embedded Design - DesignNews [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- Artificial Intelligence Essay - 966 Words | Bartleby [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- AI News: Track The Latest Artificial Intelligence Trends And ... [Last Updated On: November 18th, 2019] [Originally Added On: November 18th, 2019]
- AI in contact centres: It's time to stop talking about artificial intelligence - Verdict [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Newsrooms have five years to embrace artificial intelligence or they risk becoming irrelevant - Journalism.co.uk [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Scientists used IBM Watson to discover an ancient humanoid stick figure - Business Insider [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- The Mark Foundation Funds Eight Projects at the Intersection of Artificial Intelligence and Cancer Research - BioSpace [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Colorado at the forefront of AI and what it means for jobs of the future - The Denver Channel [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Highlights: Addressing fairness in the context of artificial intelligence - Brookings Institution [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Artificial intelligence won't kill journalism or save it, but the sooner newsrooms buy in, the better - Nieman Journalism Lab at Harvard [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- How To Get Your Rsum Past The Artificial Intelligence Gatekeepers - Forbes [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Epiq expands company-wide initiative to accelerate the deployment of artificial intelligence for clients globally - GlobeNewswire [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Preparing the Military for a Role on an Artificial Intelligence Battlefield - The National Interest Online [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Podcast decodes ethics in artificial intelligence and its relevance to public - Daily Bruin [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Global Military Artificial Intelligence (AI) and Cybernetics Market Report, 2019-2024: Focus on Platforms, Technologies, Applications and Services -... [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Artificial intelligence warning: Development of AI is comparable to nuclear bomb - Express.co.uk [Last Updated On: November 20th, 2019] [Originally Added On: November 20th, 2019]
- Google's new study reveals 'Artificial Intelligence benefiting journalism' - Digital Information World [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Artificial Intelligence (AI) in Retail Market worth $15.3 billion by 2025 - Exclusive Report by Meticulous Research - GlobeNewswire [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- With artificial intelligence to a better wood product - Newswise [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Report to Congress on Artificial Intelligence and National Security - USNI News [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Most plastic is not getting recycled, and AI robots could be a solution - Business Insider [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Fujifilm Showcases Artificial Intelligence Initiative And Advances AI - AiThority [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Artificial intelligence could be one of the most valuable tools mankind has built - here's one small but meani - Business Insider India [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Artificial Intelligence: A Need of Modern 'Intelligent' Education - Thrive Global [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Drones And Artificial Intelligence Help Combat The San Francisco Bays Trash Problem - Forbes [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- DesignCon Expands Into Artificial Intelligence, Automotive, 5G, IoT, and More For 2020 Edition - I-Connect007 [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- Is St. Louis ready for artificial intelligence? It will steal white-collar jobs here, too - STLtoday.com [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- IT chiefs recognise the risks of artificial intelligence bias - ComputerWeekly.com [Last Updated On: November 23rd, 2019] [Originally Added On: November 23rd, 2019]
- PNNL researchers working to improve doctor-patient care through artificial intelligence - NBC Right Now [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- How Augmented Reality and Artificial Intelligence Are Helping Entrepreneurs Create a Better Customer Experience - CTOvision [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- Manufacturing Leaders' Summit: Realising the promise of Artificial Intelligence - Manufacturer.com [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- 2019 Artificial Intelligence in Precision Health - Dedication to Discuss & Analyze AI Products Related to Precision Healthcare Already Available -... [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- Artificial intelligence will affect Salt Lake, Ogden more than most areas in the nation, study shows - KSL.com [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- It Pays To Break Artificial Intelligence Out Of The Lab, Study Confirms - Forbes [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- The Best Artificial Intelligence Stocks of 2019 -- and The Top AI Stock for 2020 - The Motley Fool [Last Updated On: November 28th, 2019] [Originally Added On: November 28th, 2019]
- Artificial Intelligence of Things (AIoT) Market Research Report 2019-2024 - Embedded AI in Support of IoT Things/Objects Will Reach $4.6B Globally by... [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- How Augmented Reality and Artificial Intelligence Are Helping Entrepreneurs Create a Better Customer Experience - Entrepreneur [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- SC Proposes Introduction Of Artificial Intelligence In Justice Delivery System - Inc42 Media [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Artificial intelligence in FX 'may be hype' - FX Week [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Fujifilm Showcases Artificial Intelligence Initiative And Advances at RSNA 2019 - Imaging Technology News [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- The Surprising Way Artificial Intelligence Is Transforming Transportation - Forbes [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Artificial Intelligence in 2020: The Architecture and the Infrastructure - Gigaom [Last Updated On: December 2nd, 2019] [Originally Added On: December 2nd, 2019]
- AI IN BANKING: Artificial intelligence could be a near $450 billion opportunity for banks - here are the strat - Business Insider India [Last Updated On: December 2nd, 2019] [Originally Added On: December 2nd, 2019]
- The impact of artificial intelligence on humans - Bangkok Post [Last Updated On: December 2nd, 2019] [Originally Added On: December 2nd, 2019]
- Should the EU embrace artificial intelligence, or fear it? - EURACTIV [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- BioSig Technologies Announces New Collaboration on Development of Artificial Intelligence Solutions in Healthcare - GlobeNewswire [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence-based fitness is promising but may not be for everyone - Livemint [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Pondering the Ethics of Artificial Intelligence in Health Care Kansas City Experts Team Up on Emerging - Flatland [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Baidu Leads the Way in Innovation with 5712 Artificial Intelligence Patent Applications - GlobeNewswire [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial Intelligence and National Security, and More from CRS - Secrecy News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Longer Looks: The Psychology Of Voting; Overexcited Neurons And Artificial Intelligence; And More - Kaiser Health News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Emotion Artificial Intelligence Market Business Opportunities and Forecast from 2019-2025 | Eyesight Technologies, Affectiva - The Connect Report [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- The next generation of user experience is artificially intelligent - ZDNet [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- What Jobs Will Artificial Intelligence Affect? - EHS Today [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Will the next Mozart or Picasso come from artificial intelligence? No, but here's what might happen instead - Ladders [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence apps, Parkinsons and me - BBC News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- VA launches National Artificial Intelligence Institute to drive research and development - FierceHealthcare [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]