Artificial Intelligence (AI) is a pervasive force in our lives, powering algorithms that enhance our digital experiences and revolutionize various industries. From Netflix recommendations to speedy Amazon deliveries, AI is at the core of these advancements. Moreover, AI chatbots like OpenAI’s ChatGPT showcase the cutting-edge capabilities of AI in coding and answering complex questions, marking the next frontier in this field.
For investors interested in AI companies but prefer not to individually select AI stocks, AI-focused exchange-traded funds (ETFs) offer an attractive option. These ETFs provide exposure to a diverse range of top AI companies, eliminating the need for extensive research and individual stock selection. Here are the top four AI ETFs to consider in 2023:
1. Global X Robotics & Artificial Intelligence ETF (BOTZ)
- Established in 2016, BOTZ invests in companies poised to benefit from the increasing adoption of robotics and AI.
- Portfolio includes industrial robotics, automation, non-industrial robots, and autonomous vehicles.
- Top holdings: Keyence, Fanuc, Intuitive Surgical, ABB, and NVIDIA.
2. ROBO Global Robotics and Automation Index ETF (ROBO)
- Focuses on companies driving transformative innovations in robotics, automation, and AI.
- Invests in AI firms, cloud computing, and other technology companies.
- Diversified portfolio of 80 stocks with no single holding accounting for more than 2.2% of the ETF’s value.
- Top holdings: Fanuc, Harmonic Drive Systems, IPG Photonics, Kardex Holding, and Samsara.
3. iShares Robotics and Artificial Intelligence ETF (IRBO)
- Aims to track the performance of developed and emerging market companies benefiting from long-term opportunities in robotics and AI.
- Diversified portfolio of 118 stocks with exposure to fast-growing small-cap companies.
- Top holdings: Meitu, iQIYI, Spotify, Sumo Logic, and Hello Group.
4. First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT)
- Seeks to track the Nasdaq CTA Artificial and Robotics Index, comprising companies engaged in AI and robotics across various sectors.
- Major holdings in the technology sector.
- Top holdings: C3.ai, Atos, Pegasystems, ANSYS, and Luminar Technologies.
These AI ETFs offer investors a way to participate in the growth potential of AI without the need for individual stock selection. While past performance is not indicative of future results, it’s important to note that these ETFs have closely mirrored the performance of the broader market, such as the S&P 500. Investors should carefully consider their investment objectives and conduct thorough research before making any investment decisions.
By investing in AI ETFs, individuals can gain exposure to a diversified portfolio of AI companies, taking advantage of the exciting prospects presented by the AI revolution in various sectors of the economy.