Best AI ETFs for Q2 2022

artificial news ( AI ) exchange-traded funds ( ETFs ) seek to provide exposure to a aggressive segment of the technology industry. AI aims to simulate human intelligence, leveraging herculean algorithms to make machines think and act like human beings. Though the automation of insistent tasks and substitution of human department of labor by machines is nothing newly, AI is accelerating this drift, resulting in colossus leaps in productiveness .

For investors who are affirmative about AI ’ s growth likely but uncertain about which companies will perform best, an AI ETF is an choice. AI ETFs hold a basket of stocks in companies that are engaged in some aspect of AI, enabling investors to share in the growth of AI companies ’ profits without the challenge of trying to separate the winners from the losers .

Key Takeaways

  • The artificial intelligence (AI) sector, as represented by the technology sector, outperformed the broader market over the past year.
  • The AI exchange-traded funds (ETFs) with the best one-year trailing total returns are ROBO, BOTZ, and KOMP.
  • The top holdings of these ETFs are Vocera Communications Inc., NVIDIA Corp., and Teledyne Technologies Inc., respectively.

A especial note : Some ETFs that use AI as a creature for picking stocks are besides sometimes referred to as AI ETFs. But this report focuses on ETFs targeting companies that use AI for other industries, such as robotics, automation, healthcare, and automobiles .

There are seven distinct AI ETFs that barter in the United States, excluding inverse and leverage funds a well as those with less than $ 50 million in assets under management ( AUM ). The AI sector does not have its own benchmark, but its performance is best reflected in the index for the engineering sector : the S & P 500 Information Technology sector index. The data technology ( IT ) index has slightly outperformed the broader commercialize with a sum return of 13.4 % over the past 12 months, above the S & P 500 ’ randomness total render of 13.0 %, as of Feb. 17, 2022. The best-performing AI ETF, based on performance over the past year, is the Global X Robotics & Artificial Intelligence ETF ( BOTZ ) .

We examine the three best AI ETFs below. All data in the lists below is as of Feb. 17, 2022 .

  • Performance Over One-Year: -14.1%
  • Expense Ratio: 0.95%
  • Annual Dividend Yield: 0.17%
  • Three-Month Average Daily Volume: 110,266
  • Assets Under Management: $1.7 billion
  • Inception Date: Oct. 22, 2013
  • Issuer: Exchange Traded Concepts

ROBO seeks to track the ROBO Global Robotics & Automation Index, which gauges the performance of companies engaged in robotics, automation, and AI. The ETF provides exposure to companies developing intelligent systems technology able of sensing, process, and acting, arsenic well as to companies that apply that engineering. The ETF follows a blend scheme of investing in a mix of value and growth stocks. It is diversified across a range of market capitalizations and develop markets. The fund ‘s circus tent three holdings are Vocera Communications Inc. ( V00.SC ), a healthcare communication and work flow optimization ship’s company ; iRhythm Technologies Inc. ( IRTC ), a digital healthcare company ; and Harmonic Drive Systems Inc. ( 6324 : JAS ), a manufacturer of semiconductor device and equipment utilized in robotics.

  • Performance Over One-Year: -17.5%
  • Expense Ratio: 0.68%
  • Annual Dividend Yield: 0.16%
  • Three-Month Average Daily Volume: 648,355
  • Assets Under Management: $2.2 billion
  • Inception Date: Sept. 12, 2016
  • Issuer: Mirae Asset Global Investments Co. Ltd.

BOTZ tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, comprised of companies that are likely to benefit from increased adoption and use of robotics and artificial news ( AI ). The fund includes companies involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. Industrials and IT stocks account for over 80 % of the fund ‘s portfolio combined. The top holdings of BOTZ include NVIDIA Corp. ( NVDA ), a chips and graphics processing unit manufacturer ; ABB Ltd. ( ABBN : SWX ), a Swedish-Swiss robotics, power, big electrical equipment, and automation engineering ship’s company ; and Intuitive Surgical Inc. ( ISRG ), a maker of robotic products used in minimally incursive surgeries .

  • Performance Over One-Year: -30.6%
  • Expense Ratio: 0.20%
  • Annual Dividend Yield: 1.03%
  • Three-Month Average Daily Volume: 222,003
  • Assets Under Management: $1.8 billion
  • Inception Date: Oct. 22, 2018
  • Issuer: State Street

KOMP is a multi-cap, blended fund tracking the S & P Kensho New Economies Composite Index. The index is composed of companies that leverage advancements in exponential serve power, AI, robotics, and automation. The fund holds stocks domiciled in both develop and emerging markets. Application software, semiconductor, and healthcare equipment stocks make up the three largest portions of the portfolio .

The crown holdings of KOMP include Teledyne Technologies Inc. ( TDY ), a maker of aerospace and defense electronics, digital imagination, and refer solutions ; Bruker Corp. ( BRKR ), a manufacturer of scientific instruments for molecular and materials inquiry ; and Vonage Holdings Corp. ( VG ), a swarm communications provider.

The comments, opinions, and analyses expressed herein are for informational purposes lone and should not be considered person investment advice or recommendations to invest in any security or adopt any investment strategy. Though we believe the data provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the post and may change without notice. The material is not intended as a accomplished analysis of every substantial fact regarding any country, area, commercialize, diligence, investment, or scheme.

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