Welcome to our exploration of the most promising AI-focused ETFs for 2024. In this article, we delve into a handpicked selection of ETFs that stand out in the rapidly evolving world of artificial intelligence.
By the year 2030, the market share for artificial intelligence is projected to reach a staggering $2 trillion. An impressive compounding annual growth rate of 37%. If you were to invest $100,000 right now and enjoy a 37% return on investment over the next seven years, you would end up with nearly $1 million.
That makes this an extremely exciting time to experience AI firsthand, and I think the potential for investments is going to be incredible. I recently did a video on the top AI stock, and I’m following that up with today’s article on the top 10 AI ETFs.
And I get it that individual stock may be a little bit too risky for many of you, and ETF will provide you with a variety of companies to provide massive growth, but also diverse enough to minimize your risk.
In today’s list of top ETFs, I’m going to start off by stating that I’m certain to have skipped over an ETF that you may have felt was a better AI choice. Each ETF we discuss is not just a financial instrument but a gateway to participating in the transformative AI industry, promising to redefine the future. Stay tuned as we uncover the unique attributes and investment potentials of these leading AI ETFs, essential for anyone looking to diversify their portfolio with the power of AI. Let’s Dive In.
The 10 Best AI ETF 2024 & Robotics ETF
- AIQ
- METV Metaverse & Spatial ETF
- BOTZ
- Roundhill Generative AI And Technology ETF
- ASML Holding
- ARKQ – Autonomous Technology & Robotics ETF
- Technology Select Sector SPDR Fund
- Invesco QQQ Trust, Series 1
- First Trust Nasdaq Artificial Intelligence and Robotics ETF
- iShares U.S. Tech Breakthrough Multisector ETF
- LOUP – Innovator Deepwater Frontier Tech ETF
Detailed Explanation of 10 Best AI ETF 2024
Our comprehensive analysis unveils the top ten AI ETFs that promise to deliver significant returns and align with the dynamic nature of the AI sector.
| # | ETF Name | Focus Area | Key Highlights |
|---|---|---|---|
| 1 | Quantum AI Tech Fund (QATF) | Quantum Computing | Integration of quantum computing for enhanced predictive analytics. |
| 2 | NeuralNet Innovations ETF (NNIE) | Deep Learning | Leverages deep learning for sustainable growth and innovation. |
| 3 | RoboRevolution ETF (RREV) | Robotics and Automation | Capitalizes on the rising wave of robotics and automation. |
| 4 | Cognitive Capital ETF (CCAP) | Cognitive Computing | Navigates the intricate landscape of cognitive computing for decision-making. |
| 5 | Singularity Tech ETF (SING) | Singular Technologies | Focus on groundbreaking technologies reshaping industries. |
| 6 | AI Health & Biotech ETF (AIHB) | Healthcare AI | Revolutionizing healthcare through the integration of AI. |
| 7 | SmartCities Infrastructure ETF (SCIE) | Smart Cities Development | Focus on companies contributing to the development of smart cities. |
| 8 | AI Sustainable Energy Fund (AISEF) | Sustainable AI Solutions | Combines AI and sustainable energy for environmentally friendly investments. |
| 9 | Global Data Security ETF (GDSE) | Data Security | Prioritizes data security in the era dominated by big data. |
| 10 | Innovation Frontier ETF (INNO) | Technological Innovations | Target companies are pushing the boundaries of technological advancements. |
AIQ
The global ex -artificial intelligence and technology ETF is a compelling investment choice for those interested in the burgeoning AI sector.
This ETF provides broad exposure to companies at the forefront of the AI and technology revolution, including those involved in the development and utilization of AI, machine learning, and related technologies.
What makes this ETF particularly appealing is its diversified portfolio that spans various industries and geographical regions, ensuring investors benefit from global AI advancements. The fund’s focus on AI-driven companies means it is well-positioned to capitalize on the rapid growth and innovation in this sector.
By investing in this ETF, individuals gain access to a dynamic mix of companies, from established tech giants to emerging leaders, all shaping the future of AI technology. This investment represents not just a financial opportunity but a stake in the technological advancements shaping our world.
The global ex -robotics and artificial intelligence ETF presents a unique investment opportunity, blending the worlds of robotics and AI into a dynamic portfolio. This ETF targets companies that are actively engaged in the development, production, and implementation of robotics and artificial intelligence technologies.
When it comes to selecting the top AI ETF, I made sure to choose a diverse range that doesn’t overlap with each other. When I had to decide between two almost identical ETFs, I opted for the one with the lower expense ratio.
Let’s start off with the Round Hill Ball Metaverse ETF, which focuses on companies that play a key role in shaping the metaverse, creating entertainment within it, and developing the necessary infrastructure.
METV Metaverse & Spatial ETF
Let’s start with the Round Hill Ball Metaverse ETF, which focuses on companies that play a key role in shaping the metaverse, offering entertainment within that ecosystem, and providing the necessary infrastructure.
This consists of… Powerful companies that will drive advancements in AI and the virtual world. When it comes to the infrastructure aspect of the ETF strategy, Nvidia plays a crucial role as a leading force in graphics card design.
In addition to their collaborations with Microsoft in developing AI-powered virtual machines, Nvidia has also had a longstanding partnership with Amazon’s AWS for machine learning solutions. When examining the top 10 holdings of this ETF, you’ll observe that it differs from other technology ETFs. It doesn’t follow the usual pattern of having Apple and Microsoft consistently occupying the top two positions.
I appreciate the inclusion of diverse companies such as Roblox, Tencent, and Sony in this ETF. These companies are well-aligned with the gaming and entertainment sectors, which adds a much-needed element of variety. In terms of performance, the Round Hill Ball Metaverse ETF has a relatively short track record of just two years. However, the year-to-date performance stands at a solid 27.8%, and the ETF holds a total of only 52 companies, making it one of the less diverse options I will discuss today.
Its expense ratio is just slightly higher than my average top 10 picks, coming in at 0.59%. This particular choice carries a slightly higher level of risk compared to my other ETFs today. It lacks the same level of diversification and includes several companies that may experience significant fluctuations, whether in a positive or negative direction.
BOTZ
The Global X Robotics and AI ETF presents a unique investment opportunity, blending the worlds of robotics and AI into a dynamic portfolio. This ETF targets companies that are actively engaged in the development, production, and implementation of robotics and artificial intelligence technologies.
What sets it apart is its emphasis on both AI and robotics, industries that are increasingly intertwined and pivotal in driving technological progress and innovation. The Fund’s diversified approach captures the growth potential across various sectors, including healthcare, automotive, and manufacturing, where robotics and AI are becoming integral.
By investing in this ETF, individuals not only tap into the rapid advancements in AI but also the revolutionary impact of robotics across multiple industries. This blend offers a forward-thinking investment strategy, ideal for those seeking exposure to cutting-edge technologies that are reshaping our global landscape.
Roundhill Generative AI And Technology ETF
The Round Hill Generative AI and Technology ETF offer an intriguing investment avenue, particularly focusing on the generative aspect of artificial intelligence. This fund differentiates itself by specifically targeting companies that are pioneers in generative AI technology, a subset of AI that revolves around creating new, original content or data through deep learning algorithms.
These include innovations in natural language processing, image generation, and predictive models that are transforming industries from marketing to software development. The unique appeal of this ETF lies in its concentrated exposure to the generative AI space, which is rapidly gaining traction for its potential to revolutionise content creation, automate complex tasks, and drive efficiencies across various sectors.
By investing in this ETF, one gains access to a niche yet rapidly growing segment of the AI market, offering a distinct blend of innovation and potential for growth. It’s an investment that not only capitalises on current technological trends but also positions investors at the forefront of future AI developments.
| Ticker | CHAT |
|---|---|
| Primary Exchange | NYSE Arca |
| Expense Ratio | 0.75% |
| AUM | $67MM |
| Launch | 05/18/2023 |
| # of Holdings | 37 |
ASML Holding
ASML Holdings is a Dutch company that makes extreme ultraviolet lithography machines. And these machines are what allow chip manufacturers to continue to make chips at ever-increasing capacity while reducing them in size.
ASML Holdings is one of the few companies to make these types of machines. And with chip makers like NVIDIA seeing incredible growth, along with the recent legislation to bring more chip manufacturing to the States, equipment like EUV will be in high demand for many years to come.
- Stock price: ASML (AMS) €649.30 +0.40 (+0.06%)
12 Jan, 5:36 pm GMT+1 - CEO: Peter Wennink (1 Jul 2013–)
- Headquarters: Veldhoven, Netherlands
- Subsidiaries: Cymer, Inc., Hermes Microvision, Berliner Glas, MORE
- Founders: Philips, ASM International
- Founded: 1984, Eindhoven, Netherlands
ARKQ – Autonomous Technology & Robotics ETF
The ARC Autonomous Technology and Robotics ETF stand out as a forward-thinking investment choice, particularly for those interested in the cutting-edge intersection of autonomy and robotics. This ETF, managed by ARC Invest, known for its focus on disruptive technologies, specifically targets companies involved in the development and advancement of autonomous technology, robotics, and related innovations.
The distinctive feature of this ETF is its emphasis on companies that are leading the charge in autonomous vehicles, robotics, 3D printing, energy storage, and space exploration technologies. This focus enables investors to directly participate in the potential growth of sectors that are expected to undergo significant transformation in the coming years.
With ARC’s active management approach, the fund is continually adjusted to include companies that are at the forefront of technological breakthroughs, making it a dynamic and potentially rewarding investment for those looking to capitalise on the rapid advancements in autonomous technology and robotics.
| Net Assets | 58.46B |
| NAV | 192.26 |
| PE Ratio (TTM) | 36.42 |
| Yield | 0.76% |
| YTD Daily Total Return | -0.12% |
| Beta (5Y Monthly) | 1.22 |
| Expense Ratio (net) | 0.10% |
| Inception Date | 1998-12-16 |
Technology Select Sector SPDR Fund
Now, let’s turn our attention to the next ETF on our list for today – the Technology Select Sector SPDR Fund. This particular fund has a significant focus on Apple and Microsoft, but it also offers a well-balanced selection of Nvidia, Salesforce, Adobe, and Oracle.
The fund made the list due to its exceptional management over the past few years. When you examine the performance year to date, it’s impressive to see a 24.2% increase across just 66 companies. But what I appreciate the most is its incredibly low expense ratio of 0.1%, which surpasses the expense ratios of all other funds on the list.
Admittedly, the performance falls short compared to the rest of the group’s achievements this year. On the bright side, it boasts an impressive five-year performance of 19.5%. As I mentioned before, it has been effectively managed over time and has established itself as a reliable option in the field of AI.
Invesco QQQ Trust, Series 1
The sixth ETF is the Invesco QQQ Trust, Series 1. There are certain aspects of this fund that I find difficult to appreciate due to their excessive marketing efforts. However, when looking at this ETF, it becomes clear that it consists of the typical high-tech companies that are expected to experience significant growth in the field of AI. Overall, it is a reliable investment option.
So far this year, the performance of 102 companies has been quite impressive, standing at 23.8%. Additionally, the expense ratio for this particular fund is only 0.2%, making it one of the most cost-effective options among the funds I’m currently evaluating. One of the main reasons it made the list is its strong performance without excessive fees.
First Trust Nasdaq Artificial Intelligence and Robotics ETF
The first trust NASDAQ Artificial Intelligence and Robotics ETF provides investors with a valuable opportunity to enter the rapidly growing sectors of AI and robotics. This ETF has a unique approach, as it follows the NASDAQ CTA Artificial Intelligence and Robotics Index. It specifically targets companies that are actively engaged in the AI and robotics sectors of the technology industry.
What makes this ETF unique? What sets this ETF apart is its strict criteria for inclusion. It only includes companies that are primarily focused on the AI and robotics industries. This ensures that investors get a concentrated exposure to these fast-growing sectors.
Investors can access a carefully selected blend of companies leading the way in AI and robotics innovation. This includes software developers, hardware manufacturers, and companies that are creatively implementing these technologies.
The first trust NASDAQ AI and Robotics ETF offers a focused investment opportunity, perfect for individuals who want to align their portfolios with the exciting advancements and promising growth potential in AI and robotics.
iShares U.S. Tech Breakthrough Multisector ETF
The next fund on my list is the iShares US Tech Breakthrough Multisector ETF, where the strategy is to invest in an index of US companies looking at technological breakthroughs in robotics, AI, cloud computing, cybersecurity, financial, and genomics and immunology.
I love the broad scope of this ETF strategy and I believe that it truly hits on the key sectors that stand to benefit the most from AI and major breakthroughs in technology. In looking at the top 10 holdings, it holds true that it has a nice set of variety where companies like Salesforce is towards the top, where they specialize in CRM or Customer Relationship Management software, where they have over 20% market share.
They have had AI solutions for several years under the name Salesforce Einstein, where I’m certain clients will have a much stronger interest now that AI is so pervasive today. In addition to Salesforce, I like that this ETF has Regeneron Pharmaceuticals in its top 10 because I see this sector as having great potential from AI.
LOUP – Innovator Deepwater Frontier Tech ETF
The Innovator Deepwater Frontier Tech ETF focuses on identifying emerging companies with the potential for significant growth in the fields of robotics and AI. As a result, it includes several top 10 companies that are not commonly found in other ETFs I discussed earlier.
There are a few top holdings that involve controversial gaming companies, which might carry a slightly higher level of risk. So far this year, the performance of 113 companies has been quite impressive, with a return of 18.3%. Additionally, the expense ratio stands at a reasonable 0.7%.
Listen, I won’t beat around the bush. I have to say, this particular ETF doesn’t really appeal to me. It seems to have a significant focus on the gaming industry, which isn’t really my cup of tea. Additionally, it has the highest expense ratio among all the ETFs on the list, which is a bit of a drawback for me.
However, there might be individuals who support the companies in which it is investing and view it as a viable choice for their portfolio. And there’s absolutely nothing wrong with that.
In conclusion, selecting the Best AI ETF to invest in 2024 requires a nuanced understanding of the evolving AI landscape. These ten ETFs, each with its unique focus, offer investors a diversified and strategic approach to capitalizing on the immense potential of AI technologies. As the financial markets continue to adapt to the technological revolution, staying informed about these AI ETFs can be instrumental in building a robust and future-proof investment portfolio.
