ETF Talk: Invest in Artificial Intelligence and Big Data with This Fund

Will the bots rule the world?

While the fear and promise of artificial intelligence (AI) has been heightened by recent high-profile news events such as the release of the remarkable ChatGPT software, the reality for investors is that AI is a good place to search for potential profits.

One such fund that provides exposure to this fascinating market segment is the Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ). AIG tracks a market-cap-weighted index of developed market equities involved in artificial intelligence (AI) and big data.

AIQ is passively managed to invest in developed market companies that are involved in the use of artificial intelligence to analyze big data, whether for their own operations, as a service to other companies or through the production of related hardware.

The fund determines this classification based on a composite analysis of public filings, products and services, official company statements and other information regarding direct involvement in the artificial intelligence and big data categories. AIQ’s constituents are market-cap weighted with a semi-annual re-weighting and are reconstituted annually.

AIQ had a rough 2022 in terms of share price performance, as did most tech sectors. Yet since the October lows, AIQ has spiked to a robust 23%! That’s proof of the new interest in this bleeding-edge market segment.

Chart courtesy of www.stockcharts.com

The fund has an average weighted market cap of $319 billion and an average spread of 0.75%. It currently has a 1.04% dividend yield and 79 holdings. Among the top holdings and percentage of the fund’s portfolio are Tesla (NASDAQ: TSLA), 3.88%; Meta Platforms Inc. (META), 3.82%; NVIDIA Corp. (NVDA), 3.60%; Salesforce Inc. (CRM), 3.49% and Apple Inc. (AAPL), 3.19%.

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While AIQ provides investors with access to exciting new technology in artificial intelligence and big data, I urge all interested parties to exercise their own due diligence in deciding whether or not this fund fits their own individual portfolio goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Successful Investing, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.