Explore Mutual Funds: Ai Investments

Artificial intelligence is a significant technological advancement that offers a wide range of practical applications, including facial recognition, predictive algorithms, smart home devices, and autonomous vehicles. As the AI market is still in its early stages, investors are keen to explore mutual funds and ETFs that provide exposure to this cutting-edge technology. AI-based mutual funds and ETFs invest in companies that are heavily engaged in AI development and innovation, including those focused on robotics, automation, machine learning, and big data analytics. These funds offer a diversified approach to investing in AI, allowing investors to benefit from the growth and potential of this revolutionary technology while managing the risks associated with the dynamic and rapidly evolving nature of the industry.

AI-powered active trading ETFs

• QRAFT AI-Enhanced US Large Cap ETF (QRFT)
• Defiance Quantum ETF (QTUM)
• QRAFT AI Enhanced U.S. Large Cap Momentum ETF (AMOM)
• Franklin Exponential Data ETF (XDAT)
• IShares U.S. Consumer Focused ETF (IEDI)

These ETFs use AI to identify and select securities for inclusion in the fund, and they are not limited to any specific sector or industry. This allows them to make trading decisions based on a wide range of data and factors, which can potentially lead to higher returns.

When investing in AI-powered active trading ETFs, it is important to remember that while AI technology has advanced significantly, it is still not perfect and may be subject to errors or biases. Additionally, the performance of these ETFs can depend on various factors, including the quality of the AI technology used, the size of the fund, and the expertise of the fund managers. Therefore, it is crucial to conduct thorough research and due diligence before investing.

AI-specific thematic ETFs

• Global X Artificial Intelligence & Technology ETF (AIQ): This ETF offers broad exposure to the entire AI value chain, similar to the Nasdaq-100 but with a stronger focus on technology and mid-cap growth companies. It has a diversified portfolio of 84 companies, including Alibaba Group, Meta Platforms, and Oracle Corp. The expense ratio is 0.68%.
• Roundhill Generative AI & Technology ETF (CHAT): This ETF focuses on generative AI, including notable examples like OpenAI's ChatGPT and Google's DeepMind. It selects stocks based on their relevance to generative AI, considering revenue, profit, and R&D investment. The expense ratio is 0.75%.
• Invesco AI and Next Gen Software ETF (IGPT): Invesco's thematic AI ETF tracks the STOXX World AC NexGen Software Development Index, targeting 100 companies that generate revenue from software and AI. Top holdings include Meta Platforms, Alphabet, and Nvidia. The expense ratio is 0.6%.
• Global X Robotics & Artificial Intelligence ETF (BOTZ): This ETF is a more niche play on applied automation, focusing on tech companies developing robotic and AI applications, as well as industrial and healthcare companies leveraging these solutions. It has a more global portfolio, with 49% of its holdings in American stocks and 31% in Japanese stocks. The expense ratio matches AIQ at 0.68%.
• Xtrackers Artificial Intelligence and Big Data ETF (XAIX): XAIX takes a forward-looking approach by screening for approved patents in AI-related fields like deep learning and natural language processing. The European version of this ETF holds over $3.5 billion in assets and is now available to US investors at a 0.35% expense ratio.
• ROBO Global Artificial Intelligence ETF (THNQ): This ETF focuses on companies driving transformative innovations in robotics, automation, and AI. It holds 77 stocks, with no single holding accounting for more than 2.2% of the ETF's value.

Broad technology ETFs

• Invesco QQQ Trust Series I: This ETF offers exposure to a diverse range of technology stocks and is one of the largest broad technology ETFs in terms of total assets.
• Vanguard Information Technology ETF: This ETF provides a low-cost option for investors to gain exposure to a broad range of technology companies.
• IShares U.S. Technology ETF: This ETF offers a diversified portfolio of technology stocks and is known for its strong performance.
• Fidelity MSCI Information Technology Index ETF: This ETF tracks the MSCI Information Technology Index and provides exposure to a broad range of technology companies.
• IShares Global Tech ETF: This ETF offers exposure to global technology companies and is known for its strong performance.
• Global X Artificial Intelligence & Technology ETF: This ETF focuses on companies that benefit from AI and automation, including those involved in industrial robotics, automation, non-industrial robots, and autonomous vehicles.

When investing in broad technology ETFs, it is important to consider your investment goals and risk tolerance. These ETFs can provide growth potential and diversification benefits but also come with market risk, technology sector risk, concentration risk, and currency risk. It is always recommended to consult with a financial advisor before making any investment decisions.

AI-managed mutual funds

Some of the top-performing AI-managed mutual funds include the Global X Robotics & Artificial Intelligence ETF, ROBO Global Robotics and Automation Index ETF, iShares Robotics and Artificial Intelligence ETF, and First Trust Nasdaq Artificial Intelligence ETF. These funds provide diversified exposure to the AI market by investing in a broad range of companies, from semiconductor makers to surgical robot manufacturers.

When considering an AI-managed mutual fund, it is important to evaluate the fund's holdings, expense ratio, dividend yield, and past performance. Additionally, investors should ensure that the fund aligns with their investment goals and risk tolerance. By investing in AI-managed mutual funds, investors can gain exposure to the rapidly growing AI industry while benefiting from the tax efficiency and reduced capital gains offered by mutual funds.

Robotics funds

Global X Robotics & Artificial Intelligence ETF (BOTZ)

This fund was established in 2016 and invests in companies that benefit from robotics and AI, including those in industrial robotics, automation, non-industrial robots, and autonomous vehicles. It has 44 stocks, with Nvidia, ABB, Intuitive Surgical, Keyence, and SMC Corp being the top five holdings. The fund has a modest dividend yield of 0.3% and an expense ratio of 0.68%.

ROBO Global Robotics and Automation Index ETF (ROBO)

The ROBO Global Robotics and Automation Index ETF focuses on companies driving innovation in robotics, automation, and AI. It holds 77 stocks, with no single holding accounting for more than 2.2% of the ETF's value. Its top five holdings include Intuitive Surgical, Novanta, Zebra Technologies, Fanuc, and ServiceNow. The fund has a dividend yield of 0.05% and an expense ratio of 0.95%.

IShares Robotics and Artificial Intelligence ETF (ARTY)

The iShares Robotics and Artificial Intelligence ETF was formed in 2018 and has less than $1 billion in assets under management. It holds 103 stocks, including Lumen Technologies, SiriusXM Holdings, Genius Sports, Hello Group, and Pegasystems. The fund has a competitive expense ratio of 0.47% and a dividend yield of 0.8%.

First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT)

This fund tracks the Nasdaq CTA Artificial and Robotics index and currently holds 107 stocks. Its top five holdings include ServiceNow, Pegasystems, SentinelOne, Appian, and Palantir. The fund offers an expense ratio of 0.65% and a dividend yield of 0.27%.

ROBO-STOX Global Robotics and Automation Index ETF (ROBO)

This fund seeks to replicate the price and yield performance of the ROBO-STOX Global Robotics and Automation Index. It normally invests at least 80% of its assets in securities within the index, which includes industrial robots, service robots, personal and private-use robotics, and firms supporting robotics and automation. The fund has a P/E ratio of 18.05 and a price-to-book of 1.74.

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