‘Video Killed the Radio Star’, So Let’s Turn to Artificial Intelligence with This ETF

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

As any avid reader, music lover or history buff knows, the past can often forewarn of the future, and in The Buggles 1979 hit, “Video Killed the Radio Star,” the band did just that with its iconic lyric: “We can’t rewind, we’ve gone too far.”

Advertisement.

Heading into 2024, we are no longer interested in video-cassette recorders, or VCRs, as the younger audience may know them. But we are intrigued by artificial intelligence (AI).

While the market had its ups and downs throughout the past year, AI pushed onward and led the charge into the future with continued success in AI software such as OpenAI’s ChatGPT.

So, as the holidays have tapped into our wallets, let’s harness the power of AI technology and its beneficiaries through the Global X Artificial Intelligence & Technology Exchange-Traded Fund (NASDAQ: AIQ).

Advertisement.

AIQ is a passively managed, exchange-traded fund (ETF) that seeks to invest in developed market companies that are involved in the use of AI to analyze large quantities of data, whether for their own operations, as a service to other companies or through the production of related hardware.

The fund is able to determine the above classifications based on analysis of public filings, products and services, official company statements and further information regarding a company’s direct involvement in the AI or big-data categories.

Simply put, AIQ offers investors exposure to companies that operate in the AI space or stand to potentially benefit from further AI developments.

Pursuant to the ETF’s underlying index, the Artificial Intelligence & Big Data Index, it has a global reach, but it only selects stocks with a market cap of $2 billion for AI developers/AI-as-a-service providers or $500 million for AI hardware and quantum-computing companies.

Advertisement.

AIQ has seen great success in 2023, and has garnered roughly $570 million in new money and risen roughly 47% in overall growth to round out the year.

Exclusive  ETF Talk: A Growing Opportunity for Small-Caps

The fund has net assets of $861 million and roughly $815 million in assets under management (AUM).

As you can see from the chart below, AIQ is soaring into the new year and is nearly at its 52-week high of $31.04, as it’s currently trading around $31.01. Moreover, looking at the fund’s 50- and 200-week moving averages, the steady incline is evident.

Courtesy of Stockcharts.com

Advertisement.

AIQ’s geographical exposure is concentrated in three main countries: the United States, 66.8%; China, 7.8% and Germany, 4.2%.

The fund’s top 10 holdings include Intel Corp. (INTC), 3.80%; Adobe Inc. (ADBE), 3.42%; ServiceNow Inc. (NOW), 3.42%; IBM Corp. (IBM), 3.30%; Amazon Inc. (AMZN), 3.25%; Meta Platforms Inc. Class A (META), 3.21%; Netflix Inc. (NFLX), 3.20%; Salesforce Inc. (CRM), 3.20%; Alphabet Inc. Class A (GOOGL), 3.19% and Microsoft Corp. (MSFT), 3.19%.

With strong liquidity and robust net and AUM assets, AIQ is set up to continue its forward momentum and provide interested investors with a broad exposure to AI-centric companies.

In a nutshell, this is the season of giving, and for my thrill-seeking, long-term investors out there, AIQ may be a potential Christmas gift to yourselves.

So, with a new year upon us, and an ever-growing hunger for technological advancement, I find it fitting to depart with a quote from legendary futurist, American writer and businessman, Alvin Toffler: “The great growling engine of change — technology.”

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.

Advertisement.
share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE