Although it may seem surprising, the term "artificial Intelligence" has been used for more than 50 years -- actually, since 1955. It was used to describe a new subdiscipline of computer science.

What is artificial intelligence exactly? Artificial intelligence (or AI) is simply "simulated intelligence in machines". It refers to machines that can think like humans and follow their footsteps. AI's best attribute is its ability to reason.

This is an extremely broad definition of AI technology. At least 10 applications of AI exist, which is a strong indication that the market will not disappear anytime soon.

Markets and Markets has conducted research that shows the AI industry will grow at a compound annual rate of 39.7 per cent between 2021 and 2026. There are many ways that investors can add AI investments to their portfolios, with so much money flowing into the sector.

ETFs (exchange-traded funds) are popular for investors who are new to the technology market and want to be exposed to the entire market, rather than just specific AI stocks. The 11 Ways to Make Money features five AI-focused ETFs that are listed on ETFdb.com. All information was current as of October 26, 20,21.

ETFdb.com states that these ETFs must meet one of the following criteria:

• Participation in the development of new products, services, or technological improvements in scientific research related AI
• Companies that spend money on AI research or development can have 25% portfolio exposure through funds.
• AI is used to select individual securities that will be included in the fund.

1. Global X Robotics & Artificial Intelligence ETF (NASDAQ,BOTZ)

Assets under Management (AUM: US$2.87 Billion

The Global X Robotics & Artificial Intelligence Thematic Exchange Traded Fund is first on our list of artificial intelligence ETFs. It provides exposure for companies involved in global robotics and automation industries.

ETF.com reports that the Global X Robotics ETF was created in September 2016. It holds holdings in different markets including healthcare, energy, and technology. Eligible companies must have a declared business purpose or earn a substantial portion of their revenues in the areas of robotics and artificial intelligence.

The ETF currently tracks 36 holdings. These include Intuitive Surgical, NASDAQ:ISRG, and NVIDIA (NASDAQ :NVDA).

2. ARK Autonomous Technology & Robotics ETF (ARCA:ARKQ)

AUM: US$2.73 Billion

The ARK Industrial Innovation ETF was established in September 2014. It primarily focuses upon advances in autonomous vehicles, robotics and 3D printing.

The fund is said to include companies that "benefit from new products or services, technological advances and advancements in scientific and technical research related to energy, automation, manufacturing, materials, and transportation."

ARK tracks 38 holdings. Its two largest holdings are Tesla (NASDAQ:TSLA), and Unity Software (NYSE;U).

3. Robo Global Robotics and Automation Index (ARCA:ROBO).

AUM: US$1.96 Billion

Robo Global Robotics and Automation Index ETF was launched in October 2013. It was the first robotics and automation ETF on the market. It follows companies in these sectors, as its name implies.

Robo Global currently monitors 84 companies. Its top two holdings include Brooks Automation (NASDAQ :BRKS) and iRhym Technologies (NASDAQ :IRTC).

4. iShares Robotics & Artificial Intelligence ETF - (ARCA:IRBO).

AUM: US$457.76 Million

The iShares Robotics & Artificial Intelligence ETF is the next AI ETF. It is relatively new, having been launched in June 2018. It tracks an index that includes 106 companies from both developed and emerging markets who could reap the benefits of long-term growth in artificial intelligence and robotics technologies. This fund has the lowest expense ratio, at 0.47 percent, of all the AI funds.

Ambarella (NASDAQ;AMBA) is one of the top ETF holdings. Advanced Micro Devices (NASDAQ :AMD) is another.

5. First Trust NASDAQ Artificial Intelligence Robotics ETF (NASDAQ :ROBT).

AUM: US$282.61 Million

The Last, but not least, on our list of artificial intelligence ETFs is the First Trust NASDAQ Artificial Intelligence and Robotics ETF. It was launched in February 2018. It tracks an index that includes all-cap global companies that are involved in artificial intelligence and robotics.

These companies include companies that produce advanced machinery, semiconductors, or databases for machine learning. Other companies provide products, software, or systems and add value to the AI or robotics industries.

The portfolio of this ETF includes 107 holdings including Ambarella (NASDAQ:GNTX).

Which one of these ETFs for artificial intelligence would you choose to invest in, and why? Comment below.

Securities Disclosure - I, Melissa Pistilli have no direct investment in any company mentioned.

By: Melissa Pistilli
Title: 5 Artificial Intelligence ETFs
Sourced From: investingnews.com/daily/tech-investing/emerging-tech-investing/artificial-intelligence-investing/artificial-intelligence-etfs/
Published Date: Thu, 18 Nov 2021 21:30:00 +0000

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