Investing in artificial intelligence (AI) stocks can be a risky endeavor, as not every company in this sector will succeed in the long term. While established giants like Nvidia have seen significant growth, many other AI stocks have experienced steep declines from their all-time highs.
In the fast-paced world of AI technology, it can be challenging to pinpoint which companies will come out on top. This uncertainty has led some investors to turn to exchange-traded funds (ETFs) as a more diversified and lower-risk alternative to individual stock picking.
Two particularly noteworthy AI ETFs are the Global X Artificial Intelligence and Technology ETF (AIQ) and the Global X Robotics and Artificial Intelligence ETF (BOTZ). These ETFs offer exposure to a wide range of AI-related companies, helping investors spread their risk across multiple holdings.
The AIQ ETF, established in 2018, boasts a portfolio of 84 stocks focused on companies benefiting from AI development. Its top holdings include industry leaders like Nvidia, Meta Platforms, and Netflix. With a solid track record of performance, AIQ has delivered impressive returns, outpacing the S&P 500.
On the other hand, the BOTZ ETF, launched in 2016, concentrates on robotics, automation, and autonomous vehicles. Despite having fewer holdings (43 stocks), BOTZ has shown promising returns and could benefit from the ongoing AI revolution.
Both ETFs come with a 0.68% expense ratio and provide investors with a convenient way to capitalize on the potential of AI without the risk associated with individual stock selection. As the AI landscape continues to evolve, these ETFs offer a compelling investment opportunity for those looking to tap into the growth potential of this transformative technology sector.
