In the realm of artificial intelligence, the proliferation of exchange-traded funds has surged over the past year. While major technology companies initially led the AI charge, financial managers are now observing a diversification across various sectors.
Jon Maier, the chief investment officer at International X ETFs, highlighted the influence of the “Beautiful Seven,” major corporations with extensive data access, which drove significant business activities initially. However, there is a notable shift as every S&P 500 company is now exploring AI integration strategies.
Businesses are actively incorporating AI into their operational frameworks to drive efficiencies and harness the potential of this transformative technology, as per Maier.
The International X Artificial Intelligence and Technology ETF, managed by Global, focuses on prominent AI entities in the market, providing investors with deliberate exposure to this space. This ETF has recorded a remarkable 39% growth over the last year.
Another noteworthy ETF recommended by Maier for investors seeking AI exposure beyond conventional tech sectors is the Global X Robotics and Artificial Intelligence ETF.
Todd Rosenbluth of VettaFi echoed the sentiment that AI is no longer exclusive to Big Tech players. He emphasized the broad impact of AI across various industries, particularly citing benefits for healthcare and e-commerce sectors.
Rosenbluth also mentioned VettaFi’s oversight of the ROBO Global Artificial Intelligence ETF, which emphasizes companies involved in developing the foundational equipment and technology for AI applications. This ETF encompasses e-commerce and pharmaceutical firms, distinguishing itself from other offerings in the market.
Rosenbluth expressed his belief that the AI sector is still in its nascent stages, with significant growth potential in the coming years, attracting more interest from stock investors looking into thematic investments.
The Roundhill Generative AI and Technology ETF, launched earlier this year, focuses on cutting-edge AI concepts. Dave Mazza, the chief strategist, emphasized the ETF’s concentrated approach, targeting silicon companies, pure-play AI firms, and large-cap tech entities. Despite its focused coverage, the ETF has already demonstrated over 8% growth since inception.
