Top Artificial Intelligence ETFs to Invest In: A Comprehensive Guide

Artificial Intelligence (AI) has been one of the hottest topics in the technology world for the past few years. As AI continues to evolve, it is transforming the way we do business, revolutionizing industries, and creating new investment opportunities for investors.

One such investment opportunity is investing in AI Exchange Traded Funds (ETFs). In this comprehensive guide, we will take a closer look at the top AI ETFs to invest in, the benefits of investing in AI ETFs, and some important factors to consider before investing.

What are AI ETFs?

An AI ETF is a type of ETF that invests in companies that are involved in the development and implementation of AI technologies. These ETFs offer investors exposure to a diversified portfolio of AI-related companies, without having to select individual stocks themselves.

AI ETFs are becoming increasingly popular among investors due to the rapid growth of the AI industry. According to a report by ResearchandMarkets.com, the global Artificial Intelligence market is expected to grow from $21.5 billion in 2018 to $190 billion by 2025, at a CAGR of 36.62% during the forecast period.

Top Artificial Intelligence ETFs to Invest In

Here are some of the top AI ETFs to consider:

1. Global X Robotics & Artificial Intelligence ETF (BOTZ)

The Global X Robotics & Artificial Intelligence ETF invests in companies that are involved in the development of robotics and AI technologies. Some of the top holdings of the ETF include NVIDIA, iRobot, and AeroVironment.

This ETF has a net expense ratio of 0.68% and has delivered a YTD return of 12.18% as of June 30, 2021.

2. ARK Autonomous Technology & Robotics ETF (ARKQ)

The ARK Autonomous Technology & Robotics ETF invests in companies that are involved in the development of autonomous technologies, including drones, self-driving cars, and other robotics. Some of the top holdings of the ETF include Tesla, JD.com, and Alphabet.

This ETF has a net expense ratio of 0.75% and has delivered a YTD return of 49.48% as of June 30, 2021.

3. iShares Robotics and Artificial Intelligence ETF (IRBO)

The iShares Robotics and Artificial Intelligence ETF invests in companies that generate revenue from the development and manufacturing of robotics and AI technology. Some of the top holdings of the ETF include Apple, Microsoft, and Alphabet.

This ETF has a net expense ratio of 0.47% and has delivered a YTD return of 17.64% as of June 30, 2021.

4. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

The First Trust Nasdaq Artificial Intelligence and Robotics ETF invests in companies that are involved in the development of robotics and AI technologies. Some of the top holdings of the ETF include Amazon, Microsoft, and Apple.

This ETF has a net expense ratio of 0.65% and has delivered a YTD return of 20.13% as of June 30, 2021.

Benefits of Investing in AI ETFs

There are several benefits of investing in AI ETFs, including:

• Diversification: AI ETFs offer investors exposure to a diversified portfolio of AI-related companies without having to select individual stocks themselves.
• Growth Potential: As the AI industry continues to grow, AI ETFs have the potential to generate significant returns for investors.
• Low-Cost: AI ETFs are typically low-cost investment options compared to actively managed funds or individual stocks.

Factors to Consider Before Investing

Before investing in an AI ETF, it is important to consider the following factors:

• Expense Ratio: Look for ETFs with low expense ratios, which can have a significant impact on your overall returns over time.
• Performance: Evaluate the ETF’s historical performance and compare it to other ETFs in the same category.
• Top Holdings: Evaluate the ETF’s top holdings and determine if they align with your investment goals and risk tolerance.
• Risks: Consider the risks associated with investing in AI ETFs, including the potential for market volatility and regulatory risks.

Conclusion

Investing in AI ETFs can be a great way for investors to gain exposure to the rapidly growing AI industry. By evaluating factors such as expense ratios, historical performance, top holdings and risks, investors can make informed decisions about which AI ETFs to invest in.

With the potential for significant growth and low-cost investment options, now may be the perfect time for investors to consider including AI ETFs in their investment portfolios.

Speech tips:

Please note that any statements involving politics will not be approved.