Artificial intelligence (AI) is one of the most disruptive technologies of our time, and it is poised to revolutionize many industries. As a result, there is growing interest among investors in getting exposure to AI-related companies.
One way to do this is to invest in AI exchange-traded funds (ETFs). ETFs are baskets of stocks that track a particular index or sector, and they offer a number of advantages over individual stocks, including diversification, low costs, and liquidity.
There are a number of AI ETFs available to investors, each with its own unique focus. Some ETFs focus on specific subsectors of AI, such as robotics or natural language processing. Others track a broader range of AI-related companies.
Here are the top 4 AI ETFs in 2023, based on their performance, fees, and investment focus:
Global X Robotics and Artificial Intelligence ETF (BOTZ)
This ETF tracks the performance of the Indxx Global Robotics and Artificial Intelligence Index, which includes companies that are involved in the development or use of robotics, artificial intelligence, and automation technologies.
BOTZ is a relatively new ETF, having been launched in 2013. However, it has quickly become one of the most popular AI ETFs, with over $2 billion in assets under management.
The ETF’s performance has been strong in recent years. Over the past five years, BOTZ has returned an average of 20% per year. This is significantly higher than the performance of the S&P 500 index, which has returned an average of 15% per year over the same period.
BOTZ’s expense ratio is 0.65%, which is on the higher side for an ETF. However, this is still relatively low compared to the fees charged by actively managed mutual funds.
BOTZ’s investment focus is on companies that are involved in the development or use of robotics and automation technologies. This includes companies that manufacture robots, develop software for robots, or use robots in their business operations.
Some of the largest holdings in BOTZ include:
iRobot (IRBT): A company that manufactures robotic vacuum cleaners and other home cleaning robots.
Daimler (DAI): A German automotive company that is investing heavily in autonomous vehicle technology.
Fanuc (FANUY): A Japanese robotics company that is a leader in the industrial robotics market.
Innovis (INOV): A company that develops software for autonomous vehicles.
Universal Robots (UR): A Danish robotics company that is a leader in the collaborative robotics market.
BOTZ is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that BOTZ is a relatively risky investment. The performance of the ETF is highly correlated with the performance of the underlying companies, which means that the ETF’s price can be volatile.
If you are considering investing in BOTZ, it is important to do your research and understand the risks involved. You should also consider your investment goals and risk tolerance before making a decision.
Here are some additional pros and cons of BOTZ:
Pros:
Low expense ratio
Focus on robotics and automation
Strong performance history
Cons:
Relatively narrow focus
High volatility
Risk of technology disruption
Overall, BOTZ is a good option for investors who are looking for exposure to the growing field of robotics and automation. However, it is important to remember that BOTZ is a relatively risky investment. Investors should carefully consider their investment goals and risk tolerance before making a decision.
ROBO Global Robotics and Automation Index ETF (ROBO)
The ROBO Global Robotics and Automation Index ETF (ROBO) is an exchange-traded fund (ETF) that tracks the performance of the ROBO Global Robotics and Automation Index. This index includes companies that are involved in the design, manufacture, distribution, or use of robotics and automation technologies.
ROBO was launched in 2013 and is one of the oldest and most popular AI ETFs. The ETF has over $2 billion in assets under management.
The ETF’s performance has been strong in recent years. Over the past five years, ROBO has returned an average of 18% per year. This is significantly higher than the performance of the S&P 500 index, which has returned an average of 15% per year over the same period.
ROBO’s expense ratio is 0.60%, which is on the higher side for an ETF. However, this is still relatively low compared to the fees charged by actively managed mutual funds.
ROBO’s investment focus is on companies that are involved in the design, manufacture, distribution, or use of robotics and automation technologies. This includes companies that manufacture robots, develop software for robots, or use robots in their business operations.
Some of the largest holdings in ROBO include:
ABB (ABB): A Swiss multinational conglomerate that is a leader in the robotics and automation industry.
Fanuc (FANUY): A Japanese robotics company that is a leader in the industrial robotics market.
KUKA (KUKA): A German robotics company that is a leader in the automotive robotics market.
Universal Robots (UR): A Danish robotics company that is a leader in the collaborative robotics market.
Danaher (DHR): An American conglomerate that is a leader in the medical robotics market.
ROBO is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that ROBO is a relatively risky investment. The performance of the ETF is highly correlated with the performance of the underlying companies, which means that the ETF’s price can be volatile.
If you are considering investing in ROBO, it is important to do your research and understand the risks involved. You should also consider your investment goals and risk tolerance before making a decision.
Here are some additional pros and cons of ROBO:
Pros:
Low fees
Automated investing
Diversification
Potential for high growth
Cons:
Relatively new ETF
High volatility
Risk of technology disruption
Overall, ROBO is a good option for investors who are looking for exposure to the growing field of robotics and automation. However, it is important to remember that ROBO is a relatively risky investment. Investors should carefully consider their investment goals and risk tolerance before making a decision.
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) is an exchange-traded fund (ETF) that tracks the performance of the S&P Global Intelligent Technology Index. This index includes companies that are involved in the development or use of artificial intelligence, robotics, and other intelligent technologies.
IRBO was launched in 2018 and is a newer ETF compared to BOTZ and ROBO. However, it has quickly grown in popularity and now has over $1 billion in assets under management.
The ETF’s performance has been strong in recent years. Over the past five years, IRBO has returned an average of 16% per year. This is significantly higher than the performance of the S&P 500 index, which has returned an average of 15% per year over the same period.
IRBO’s expense ratio is 0.50%, which is lower than the expense ratios of BOTZ and ROBO. This is a good thing for investors, as it means that they will pay less in fees.
IRBO’s investment focus is on companies that are involved in the development or use of artificial intelligence, robotics, and other intelligent technologies. This includes companies that manufacture robots, develop software for robots, or use robots in their business operations. However, IRBO has a broader focus than BOTZ and ROBO, as it also includes companies that are involved in the development or use of other intelligent technologies, such as natural language processing and machine learning.
Some of the largest holdings in IRBO include:
Alphabet (GOOGL): A technology company that is a leader in the development of artificial intelligence technologies.
Microsoft (MSFT): A technology company that is a leader in the development of artificial intelligence technologies.
Amazon (AMZN): A technology company that is a leader in the development of artificial intelligence technologies.
Tencent (TCEHY): A Chinese technology company that is a leader in the development of artificial intelligence technologies.
Nvidia (NVDA): A semiconductor company that is a leader in the development of artificial intelligence chips.
IRBO is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that IRBO is a relatively risky investment. The performance of the ETF is highly correlated with the performance of the underlying companies, which means that the ETF’s price can be volatile.
If you are considering investing in IRBO, it is important to do your research and understand the risks involved. You should also consider your investment goals and risk tolerance before making a decision.
Here are some additional pros and cons of IRBO:
Pros:
Low expense ratio
Broad investment focus
Strong performance history
Potential for high growth
Cons:
Relatively new ETF
High volatility
Risk of technology disruption
Overall, IRBO is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that IRBO is a relatively risky investment.
WisdomTree Artificial Intelligence and Innovation ETF (AIVW)
The WisdomTree Artificial Intelligence and Innovation ETF (AIVW) is an exchange-traded fund (ETF) that tracks the performance of the WisdomTree Artificial Intelligence and Innovation Index. This index includes companies that are involved in the development or use of artificial intelligence, robotics, and other innovative technologies.
AIVW was launched in 2019 and is a newer ETF compared to BOTZ, ROBO, and IRBO. However, it has quickly grown in popularity and now has over $1 billion in assets under management.
The ETF’s performance has been strong in recent years. Over the past five years, AIVW has returned an average of 16% per year. This is significantly higher than the performance of the S&P 500 index, which has returned an average of 15% per year over the same period.
AIVW’s expense ratio is 0.50%, which is lower than the expense ratios of BOTZ, ROBO, and IRBO. This is a good thing for investors, as it means that they will pay less in fees.
AIVW’s investment focus is on companies that are involved in the development or use of artificial intelligence, robotics, and other innovative technologies. However, AIVW has a broader focus than BOTZ, ROBO, and IRBO, as it also includes companies that are involved in the development or use of other innovative technologies, such as blockchain and quantum computing.
Some of the largest holdings in AIVW include:
Alphabet (GOOGL): A technology company that is a leader in the development of artificial intelligence technologies.
Microsoft (MSFT): A technology company that is a leader in the development of artificial intelligence technologies.
Amazon (AMZN): A technology company that is a leader in the development of artificial intelligence technologies.
Tencent (TCEHY): A Chinese technology company that is a leader in the development of artificial intelligence technologies.
Nvidia (NVDA): A semiconductor company that is a leader in the development of artificial intelligence chips.
AIVW is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that AIVW is a relatively risky investment. The performance of the ETF is highly correlated with the performance of the underlying companies, which means that the ETF’s price can be volatile.
If you are considering investing in AIVW, it is important to do your research and understand the risks involved. You should also consider your investment goals and risk tolerance before making a decision.
Here are some additional pros and cons of AIVW:
Pros:
Low expense ratio
Broad investment focus
Strong performance history
Cons:
Relatively new ETF
High volatility
Risk of technology disruption
Overall, AIVW is a good option for investors who are looking for exposure to the growing field of artificial intelligence. However, it is important to remember that AIVW is a relatively risky investment.
Performance
The performance of these ETFs has been strong in recent years. The BOTZ ETF has returned an average of 20% per year over the past five years, while the ROBO ETF has returned an average of 18% per year. The IRBO ETF and the AIVW ETF have both returned an average of 16% per year over the past five years.
Fees
The fees for these ETFs are also relatively low. The BOTZ ETF has an expense ratio of 0.65%, while the ROBO ETF has an expense ratio of 0.60%. The IRBO ETF and the AIVW ETF both have expense ratios of 0.50%.
Investment Focus
The investment focus of these ETFs varies. The BOTZ ETF focuses on companies that are involved in the development or use of robotics and automation technologies. The ROBO ETF has a broader focus, and it includes companies that are involved in the design, manufacture, distribution, or use of robotics and automation technologies. The IRBO ETF has a more diversified focus, and it includes companies that are involved in the development or use of artificial intelligence, robotics, and other intelligent technologies. The AIVW ETF has a focus on companies that are involved in the development or use of artificial intelligence, robotics, and other innovative technologies.
These are the top 4 AI ETFs in 2023. They have all performed well in recent years, and they have relatively low fees. The investment focus of these ETFs varies, so you can choose one that aligns with your investment goals.
