Friday , 29 September 2023

Consider Investing In One Of These 12 AI-Focused ETFs – They’re UP 50%, On Average, YTD

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If you want to get portfolio exposure to AI companies but don’t want to research and choose individual stocks on your own, then consider investing in an AI-focused ETF that provides exposure to a broad range of the best AI companies. This article presents 12 ETFs that do just that.

An original article by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY to making money!

According to Grand View Research the AI industry is expected to surge from about $197 billion in 2023 to $1.8 trillion by 2030, representing a compound annual growth rate of 37% – but what is the best way to chose that growth?

  • invest in individual AI stocks OR
  • invest in the best ETFs in the broader tech sector that have some AI exposure OR
  • invest in robotics and AI ETFs OR, better yet,
  • invest semiconductor/AI ETFs.

This article presents 12 ETFs that concentrate on semiconductor/AI ETFs for your review, ranked in descending order of performance as of the end of July (designated as YTD below), as follows:

  1. VanEck Semiconductor ETF (SMH): +58.3% YTD
    • invests in companies involved in semiconductor production and equipment.
    • has a portfolio of 26 stocks
    • is passively managed
    • has expenses of 0.35%
  2. iShares Semiconductor ETF (SOXX): +53.8% YTD
    • invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment sectors
    • has a portfolio of 30 stocks
    • is passively managed
    • has expenses of 0.35%
  3. Strive U.S. Semiconductor ETF (SHOC): +53.2%
    • offers concentrated exposure to the U.S. semiconductor sector
    • has a portfolio of 32 stocks
    • is passively managed
    • has expenses of 0.40%
  4. Invesco PHLX Semiconductor ETF (SOXQ): +52.9% YTD
    • provides exposure to the largest US-listed companies involved in the design, distribution, manufacturing and sale of semiconductors
    • has a portfolio of 30 stocks
    • is passively managed
    • has expenses of 0.19%
  5. ROBO Global Artificial Intelligence ETF (THNQ): +48.7% YTD
    • focuses on stocks that are developing the technology and infrastructure enabling AI, such as computing, data and cloud-services, as well as companies that apply AI in various verticals
    • has a portfolio of 70 stocks
    • is passively managed
    • has expenses of 0.68%
  6. Invesco Dynamic Semiconductors ETF (PSI): +48.6% YTD
    • invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment sectors
    • has a portfolio of 32 stocks
    • is passively managed
    • has expenses of 0.55%
  7. Global X Artificial Intelligence & Technology ETF (AIQ): 46.8% YTD
    • invests in both companies that are developing AI products and services, as well as companies responsible for hardware that helps facilitate artificial intelligence for big data uses.
    • has portfolio of 90 stocks
    • is actively managed
    • has expenses of 0.68%, or $68 annually for every $10,000 invested
  8. TrueMark Technology, AI & Deep Learning ETF (LRNZ): +46.7% YTD
    • provides exposure to technology companies that are significantly involved in the application of advanced levels of artificial intelligence within their businesses
    • has a portfolio of 22 stocks
    • is actively managed
    • has expenses of 0.69%
  9. First Trust Nasdaq Semiconductor ETF (FTXL): +46.5 YTD%
    • invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment sectors
    • has a portfolio of 32 stocks
    • is passively managed
    • has expenses of 0.60%
  10. Columbia Seligman Semiconductor and Technology ETF (SEMI): +43.8%
    •  invests in stocks of companies operating across semiconductors and semiconductor equipment, communication equipment, electronic equipment, instruments and components, technology hardware, storage and peripherals, and software sectors
    • has a portfolio of 40 stocks
    • is actively managed
    • has expenses of 0.75%
  11. Wisdom Tree Artificial Intelligence and Innovation Fund ETF (WTAI): +43.0% YTD
    • provides exposure to companies focusing on AI and innovation technologies that generate at least 50% of their revenue from such activities
    • has a portfolio of 80 stocks
    • is passively managed
    • has expenses of 0.45%
  12. State Street SPDR S&P Semiconductor ETF (XSD): +41.9% YTD
    • invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment sectors
    • has a portfolio of 39 stocks
    • is passively managed
    • has expenses of 0.35%

Average Increase In July: 5.1%; Since the End of April: 32.3%; YTD: 50.1%

Honorable Mention

  1. Franklin Intelligent Machines ETF (IQM): +37.4% YTD
    • invests in companies operating across information technology, software and services, software, systems software, automation products and services, software research and artificial intelligence software sectors
    • has a portfolio of 58 stocks
    • is passively managed
    • has expenses of 0.50%
  2. Defiance Quantum Computing ETF (QTUM): +35.2% YTD
    • invests in companies involved in research, development, and commercialization of quantum computing systems and materials.
    • has a portfolio of 72 stocks
    • is passively managed
    • has expenses of 0.40%
  3. Roundhill Generative AI & Technology ETF (CHAT): Launched on May 18/23
    • invests in companies that are positioned in generative AI and related technologies and derive at least 50% of their revenue from such industries
    • has a portfolio of 36 stocks
    • is actively managed
    • has expenses of 0.75%

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