Artificial intelligence (AI) is quickly becoming a major force in the world of technology. As AI continues to develop, it’s important for investors to understand how they can gain exposure to this rapidly growing sector. One way to do so is through exchange-traded funds (ETFs). ETFs are investment vehicles that track an index or basket of assets and provide investors with diversified exposure to different sectors and industries.
Two top ETFs for artificial intelligence exposure are the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) and the iShares Exponential Technologies ETF (XT). Both offer broad access to companies involved in robotics, automation, machine learning, natural language processing, computer vision, and other related technologies.
The Global X Robotics & Artificial Intelligence Thematic ETF seeks long-term capital appreciation by investing primarily in equity securities of global companies engaged in the development of robotics and/or artificial intelligence as defined by Indxx LLC. BOTZ has $2 billion in total assets under management (AUM), making it one of the largest AI-focused funds on the market today. It holds over 80 stocks from around the world including Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA), Alphabet Inc Class A Shares(GOOGL), Amazon.com Inc.(AMZN), Intel Corporation(INTC) ,and SoftBank Group Corp.(SFTBY).
The iShares Exponential Technologies ETF provides access to companies whose products or services have been enabled by exponential technologies such as AI, blockchain technology, cloud computing etc.. XT has $1 billion AUM and invests across multiple sectors including information technology hardware & equipment; software; semiconductors; internet retailing; communication services; healthcare providers & services; biotechnology ; pharmaceuticals ; aerospace & defense ; media production & distribution ; consumer electronics manufacturing ; medical instruments & supplies . Some notable holdings include Apple Inc.(AAPL); Facebook Inc Class A Shares(FB); Alibaba Group Holding Ltd ADR(BABA); Tesla Inc.(TSLA); JD.Com Inc ADR(JD); Tencent Holdings Ltd ADR(TCEHY).
Both BOTZ and XT have outperformed their respective benchmarks year-to-date with returns of 28% vs 24% for BOTZ’s benchmark Solactive Robotics&AI Index TR USD ,and 25% vs 21% for XT’s benchmark Morningstar US Exponential Technology Index TR USD respectively . This outperformance could be attributed partly due to strong performance from some key holdings like NVDA which gained more than 100 % YTD while AAPL gained nearly 70%.
Investors looking for broad exposure into artificial intelligence should consider these two top performing ETFs – BOTZ and XT – both offering diversified portfolios with attractive returns year-to date compared against their respective benchmarks . However ,investors should always remember that past performance does not guarantee future results so they should conduct thorough research before investing any money into these funds or any other investments .
TipRanks
