Unveiling 4 Best AI ETFs for Growth in 2024!

Investing in the future has never been more accessible or exciting, especially with the rise of Artificial Intelligence (AI). If you’re looking to capitalize on the burgeoning AI industry, AI-focused Exchange Traded Funds (ETFs) might be the way to go.

In this article, we’ll delve into what AI ETFs are, why they’re a smart investment, and highlight some of the best AI ETFs to consider. So, let’s dive in and explore the world of AI ETFs!

What is an AI ETF?

An Exchange Traded Fund (ETF) is a type of investment fund and exchange-traded product, meaning it is traded on stock exchanges.

ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep trading close to its net asset value, though deviations can occasionally occur. 

AI-focused ETFs specifically invest in companies involved in the development, research, or application of artificial intelligence technologies. This can include sectors like robotics, automation, and various software applications that employ AI.

Top AI ETFs in 2024

We provide you with the list of the best AI ETFs we chose from all available:

Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C

The Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C is a notable addition to the landscape of AI-focused investment funds. Managed by DWS Group, this ETF aims to provide investors with access to a diversified portfolio of companies that are significantly involved in the development and utilization of artificial intelligence and big data technologies.

Investment Objective

The primary goal of this ETF is to track the performance of the Solactive Artificial Intelligence & Big Data Index.

This index is composed of companies from developed markets that are leaders in AI and big data sectors. By replicating this index, the ETF offers investors a means to capitalize on the rapid growth and innovation within these industries.

Key Holdings

The ETF includes shares of companies that are at the forefront of AI and big data technologies. While the specific holdings can change, some of the prominent companies typically included are:

NVIDIA Corporation: Known for its cutting-edge GPUs, which are essential for AI computations.

Alphabet Inc. (Google): A leader in AI research and applications, including machine learning and data analytics.

Microsoft Corporation: Provides comprehensive AI solutions through its Azure cloud platform.

Amazon.com Inc.: Through Amazon Web Services (AWS), it offers extensive AI and data analytics services.

Fund Composition and Diversification

The ETF offers a broad range of holdings across various sectors such as technology, healthcare, and financial services. This diversification helps mitigate the risks associated with investing in a single company or sector, providing a balanced exposure to the AI and big data industries.

Performance Analysis

The performance of the Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C is closely linked to the advancements in AI and big data technologies.

As these sectors continue to expand, driven by technological innovations and increased data generation, the ETF is well-positioned to benefit from these trends. Historical performance data typically shows robust growth, reflecting the dynamic nature of the underlying industries.

Accumulating Structure

This ETF has an accumulating structure (denoted by the “1C” in its name), which means that any dividends received from the underlying companies are reinvested into the fund rather than being distributed to shareholders.

This reinvestment strategy can enhance the overall return for investors over the long term, making it an attractive option for those looking to grow their investments through compound growth.

Expense Ratio

The expense ratio for the Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C is competitive, reflecting the cost efficiency of passive investment strategies. A lower expense ratio can significantly benefit investors by reducing the costs associated with maintaining the investment, thus improving net returns.

UCITS Compliance

As a UCITS (Undertakings for Collective Investment in Transferable Securities) compliant fund, this ETF adheres to stringent European regulatory standards. 

This compliance ensures a high level of investor protection, transparency, and regulatory oversight, which is crucial for maintaining investor confidence and trust.

Summary

The Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C is a strong contender for investors looking to tap into the lucrative and rapidly growing AI and big data markets. 

Its diversified portfolio, accumulating structure, and compliance with rigorous regulatory standards make it an attractive option for both individual and institutional investors aiming to achieve long-term growth.

Global X Robotics & Artificial Intelligence UCITS ETF USD: A Journey into Innovations

Embark on a journey of innovation with the Global X Robotics & Artificial Intelligence UCITS ETF USD. This ETF is your ticket to the forefront of robotics and artificial intelligence (AI) innovation, meticulously crafted to provide investors with unparalleled exposure to the transformative technologies shaping our future.

A Visionary Investment Objective

At the heart of this ETF lies a visionary objective: to replicate the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index. 

This index is a curated selection of companies from developed and emerging markets, deeply immersed in the robotics and AI industries. By mirroring this index, the ETF invites investors to join the quest for growth and potential offered by these cutting-edge sectors.

Exploring Key Holdings

Step into a world of innovation with the ETF’s diverse range of key holdings:

NVIDIA Corporation: Powering AI and deep learning applications with its renowned GPUs.

Intuitive Surgical Inc.: Leading the charge in robotic-assisted surgery systems.

Fanuc Corporation: Revolutionizing industrial robotics and automation solutions.

ABB Ltd.: Pioneering robotics, automation, and electrification technologies.

Keyence Corporation: Specializing in sensors and automation-related products, shaping the future of automation.

A Tapestry of Diversification

Experience the ETF’s rich tapestry of diversification, offering exposure to a broad portfolio of companies across various sectors, from technology to healthcare and industrial automation. 

This diversification is not just about mitigating risks; it’s about embracing the balanced approach needed to capture the exponential growth of the robotics and AI industries.

Performance: A Symphony of Innovation

The performance of the Global X Robotics & Artificial Intelligence UCITS ETF USD dances to the rhythm of advancements and adoption rates in robotics and AI technologies.

As industries harness these technologies to drive efficiency and innovation, the ETF stands poised to reap the rewards. Historical performance data sings the song of robust growth, echoing the dynamic nature of the sectors it encompasses.

Expense Ratio: Your Path to Efficiency

Experience the efficiency of a competitive expense ratio, offering a cost-effective gateway for investors seeking exposure to the robotics and AI markets. Lower expense ratios pave the way for enhanced net returns, ensuring that every investment journey is met with maximum efficiency and potential.

Currency and Trading: A Global Symphony

Dive into the global symphony of investing with an ETF denominated in USD, accessible to a diverse range of international investors.

Listed on various exchanges, this ETF offers liquidity and ease of trading, ensuring that investors can navigate their investment journey with confidence and ease.

Conclusion: Embrace Tomorrow’s Innovations Today

The Global X Robotics & Artificial Intelligence UCITS ETF USD isn’t just an investment opportunity; it’s a gateway to tomorrow’s innovations. 

With its diversified portfolio, competitive expense ratio, and unwavering focus on high-growth industries, this ETF invites investors to embrace the technological advancements shaping the future.

By investing in this ETF, investors unlock the potential to gain broad exposure to leading companies in the robotics and AI space, positioning themselves to seize the significant growth opportunities that these transformative technologies present. 

Join the journey today and embrace the innovations that will shape tomorrow’s world.

L&G Artificial Intelligence UCITS ETF: Investing in Tomorrow’s World

Imagine investing in a world where AI revolutionizes our everyday lives. The L&G Artificial Intelligence UCITS ETF opens the door to this exciting future, providing investors with the chance to support companies at the forefront of AI technology.

Managed by the renowned Legal & General Investment Management (LGIM), this ETF is designed to capture the immense growth potential of the AI industry by tracking an index of companies deeply engaged in AI development and application.

Visionary Investment Objective

The L&G Artificial Intelligence UCITS ETF’s primary goal is to mirror the performance of the ROBO Global Artificial Intelligence Index. This index is a carefully curated collection of companies that are pioneering AI innovations across various sectors and regions.

By following this index, the ETF offers a strategic pathway for investors to benefit from the rapid advancements and widespread adoption of AI technologies.

Diverse and Balanced Portfolio

This ETF provides a gateway to a wide array of companies involved in all facets of AI, including hardware, software, and services. Such diversification is key to minimizing the risks associated with investing in a single company or sector.

It ensures a balanced approach, capturing the dynamic growth of the AI industry while spreading out potential risks.

Promising Performance

The success of the L&G Artificial Intelligence UCITS ETF is intimately tied to the strides made in AI technology.

As industries across the globe increasingly integrate AI to enhance innovation and efficiency, the ETF stands to gain from the growth and success of its constituent companies.

Historical performance data reflects robust growth, underscoring the rapid and evolving nature of the AI sector.

Cost-Effective Investment

With a competitive expense ratio, the L&G Artificial Intelligence UCITS ETF is an economical choice for those looking to invest in the AI market.

A lower expense ratio translates to reduced overall investment costs, potentially boosting net returns and making it a savvy option for cost-conscious investors.

UCITS Compliance: A Seal of Trust

As a UCITS (Undertakings for Collective Investment in Transferable Securities) compliant fund, this ETF meets stringent European regulatory standards.

This compliance ensures high levels of investor protection, transparency, and oversight, fostering confidence and trust among investors.

A Strategic Investment for the Future

The L&G Artificial Intelligence UCITS ETF is more than just an investment; it’s a chance to be part of the AI revolution.

With its diverse portfolio of leading AI companies, competitive expense ratio, and rigorous regulatory compliance, this ETF offers a smart and strategic way to invest in the future.

By choosing the L&G Artificial Intelligence UCITS ETF, investors position themselves at the heart of the AI sector, poised to benefit from the significant growth and transformative opportunities that AI innovations are set to bring in the years ahead.

This is more than just a financial decision—it’s a commitment to supporting the technologies that will shape tomorrow’s world.

Amundi MSCI Robotics & AI ESG Screened UCITS ETF Acc

Imagine a world where cutting-edge technology and ethical investing converge. The Amundi MSCI Robotics & AI ESG Screened UCITS ETF offers you a ticket to this future, where innovation and sustainability walk hand in hand.

This isn’t just another ETF; it’s a vision for tomorrow, blending the relentless progress of robotics and artificial intelligence with a commitment to environmental, social, and governance (ESG) principles.

A New Era of Investing

Welcome to an investment that doesn’t just promise returns but also aims to make the world a better place. The Amundi MSCI Robotics & AI ESG Screened UCITS ETF is designed for those who believe that our financial decisions today shape the world of tomorrow.

It captures the essence of companies at the forefront of robotics and AI, while ensuring they adhere to strict ESG criteria. This means you’re investing in progress, but not at the cost of our planet or societal well-being.

Why This ETF Stands Out

Innovative and Ethical: It’s rare to find an investment that balances cutting-edge technology with a conscience. This ETF is a testament to the belief that you can drive technological advancement without compromising on ethical standards.

Diversification with a Purpose: Spanning multiple sectors, from healthcare to manufacturing, this ETF ensures you’re not putting all your eggs in one basket. Each company within the ETF is chosen not just for its technological prowess but also for its adherence to ESG principles.

Performance with Integrity: Investing in this ETF means backing companies that are likely to be the leaders of tomorrow. Companies like NVIDIA, renowned for their AI hardware, or ABB, a giant in industrial automation, are just a few of the names you’ll find here. They’re not just leaders; they’re pioneers with a conscience.

Key Holdings: Leaders and Pioneers

NVIDIA Corporation: Revolutionizing AI with powerful GPUs.

ABB Ltd.: Leading the way in robotics and automation.

Intuitive Surgical Inc.: Transforming healthcare with robotic-assisted surgery.

Keyence Corporation: Innovating in sensor technology and automation.

The Heartbeat of Ethical Innovation

Investing in the Amundi MSCI Robotics & AI ESG Screened UCITS ETF is about more than financial growth.

It’s about being part of a movement that sees technology as a force for good. It’s for the dreamers who see robots performing surgery, AI making ethical decisions, and automation driving sustainability.

The ESG Commitment

Every company in this ETF is screened for ESG criteria. This means they meet high standards of environmental responsibility, social impact, and governance.

It’s a promise that your investments are helping to build a sustainable and equitable future. Imagine the pride in knowing your financial growth supports companies that value our planet and its people just as much as their profit margins.

Performance with Purpose

The ETF aims to replicate the performance of the MSCI ACWI IMI Robotics & AI ESG Filtered Index. This isn’t just about tracking numbers; it’s about mirroring the growth of companies that are changing the world for the better.

Historical data shows robust performance, but what’s more exciting is the potential for future growth as AI and robotics become even more integral to our lives.

Why Choose This ETF?

Ethical Returns: Enjoy financial growth knowing you’re backing companies with strong ESG commitments.

Future-Proof Investing: Robotics and AI are not just trends; they are the future. This ETF positions you to benefit from their long-term growth.

Conscious Choice: Be part of a solution that believes in progress without sacrificing ethics.

Join the Movement

Choosing the Amundi MSCI Robotics & AI ESG Screened UCITS ETF is choosing to be on the right side of history. It’s for those who believe that investing should align with their values. It’s for those who dream big, invest smart, and care deeply.

Step into the future with confidence, knowing your investments are powering not just technological advancements but also a more sustainable and ethical world. This is more than just an ETF; it’s a movement towards a brighter, more responsible future.

FAQ

What is the minimum investment for AI ETFs?

Most AI ETFs do not have a minimum investment requirement, but the minimum will be determined by the price of a single share of the ETF.

How do AI ETFs differ from individual AI stocks?

AI ETFs provide exposure to a basket of AI-related stocks, offering diversification, while individual AI stocks involve investing in a single company.

Are AI ETFs suitable for long-term investment?

Yes, AI ETFs can be a good option for long-term investment due to the growth potential of the AI industry.

What sectors do AI ETFs typically cover?

AI ETFs often cover sectors such as technology, healthcare, automotive, and industrial automation.

Can I invest in AI ETFs through my retirement account?

Yes, you can invest in AI ETFs through retirement accounts like IRAs and 401(k)s, provided your brokerage offers them.