Exchange Traded Funds (ETFs)

Learn to Invest in Deep Learning AI

With the tech sector soaring to seemingly astronomical heights, a key driver appears to be artificial intelligence (AI).

AI technology is still new and exciting, with expectations of its growth continuing to rise, leaving many investors wanting a piece of the profit pie. Let me introduce a fund that can offer investors exposure to this tempting opportunity.

Enter the TrueShares Technology, AI & Deep Learning ETF (LRNZ). LRNZ is an actively managed, concentrated portfolio of global stocks centered around the development and utilization of artificial intelligence and deep learning technologies. The fund holds 20-30 mostly large-cap stocks at a time, all of which either derive at least half of their revenue from, or are seen to have a competitive advantage in, AI technologies.

The fund’s stocks are sorted into one of three categories. The first, secular growth, consists of stocks the fund managers use as a buy-and-hold strategy. This category is expected to have the greatest number of holdings. The second, cyclical growth businesses, are monitored to identify shares that ideally can be bought at the bottom of a cycle and sold at their peak. Finally, there are initial public offering positions, which are built over several months following an IPO.

LRNZ contains primarily U.S. stocks, which consist of more than 99% of its holdings. Over 72% of its assets are in technology services, with additional smaller holdings in electronics, health technology and retail trade. Top current holdings include NVIDIA Corp (NDVA), Advanced Micro Devices, Inc. (AMD), Snowflake, Inc. (SNOW), Schrodinger, Inc. (SDGR), Mobileye Global, Inc. (MBLY), SentinelOne, Inc. (S) and Samsara, Inc. (IOT).

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Chart courtesy of StockCharts.com.

As of May 29, LRNZ is up 20.19% in the last month, 16.78% in the past three months and an astonishing 32.68% year to date (YTD). The fund also boasts a current expense ratio of 0.69%.

While this window into the world of AI investing is exciting, it’s always important to consider your personal financial situation and goals before making any investment. Investors are always encouraged to do their due diligence before adding any stock or ETF to their portfolios.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You may just 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.