Artificial intelligence (AI) is reshaping industries and economies at an unprecedented pace, driving remarkable growth and transformation worldwide. With the so-called ‘Fourth Industrial Revolution’ in full swing, thanks to the massive investments in AI and its prospects to drive economic growth, AI is truly taking the world by storm.
Against this backdrop, investors can view fundamentally stable AI ETFs, Global .
The coming AI and its integration into various industries is aptly called the Fourth Industrial Revolution. The transformative power of AI, together with the Internet of Things (IoT) and robotics, is steadily changing the way conventional industries, economies and societies function, ushering in a new era of innovation.
With branches spreading into a wide range of industries such as cloud computing, biotechnology, education, sales, marketing, cybersecurity and many more, investments in AI infrastructure have also never seen better days. According to a report from IDC, spending on AI infrastructure is expected to exceed $100 billion by 2028.
With such an impactful role in various corners of the economy and driven by higher investments, AI is expected to contribute up to $15.70 trillion to the global economy by 2030.
So let’s take a deep dive into the fundamentals of three AI ETFs, starting with #3.
ETF #3: GlobalCLEANING)
BOTZ, launched and managed by Global X Management Company LLC, invests in shares of companies active in the development of robotics and/or artificial intelligence. The fund tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index using a full replication technique.
With $2.61 billion in assets under management (AUM), BOTZ’s top holdings include NVIDIA Corporation (NVDA) with a 13.54% weighting, followed by Intuitive Surgical, Inc. (ISRG) with a weighting of 10.48% and ABB Ltd. (ABBNY) with a weighting of 9.06%. and Keyence Corporation at 6.67%.
The ETF has a total of 47 investments, with the top 10 assets accounting for 63.32% of assets under management. Net inflows last month were $39.79 million. In addition, BOTZ pays an annual dividend of $0.05, which translates to a yield of 0.14% at current price levels.
BOTZ is up 6.9% over the past six months and 15.1% over the past year to close the latest trading session at $32.92. The net asset value of the fund as of December 26, 2024 was $32.79.
BOTZ’s POWR Ratings reflect its strong outlook. The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
BOTZ has an A grade for Buy & Hold and Trade. It ranks #16 out of 119 ETFs in the A-rated group of Technology Equities ETFs.
Click here to access all of BOTZ’s POWR Reviews.
ETF No. 2: Robo Global Robotics and Automation Index ETF (ROBO)
ROBO, operated by Exchange Traded Concepts, LLC, focuses on information technology, software and automation services companies. It uses a full replication technique to align with the ROBO Global Robotics and Automation Index and provides targeted exposure to the rapidly evolving robotics and automation industries.
With $1.07 billion in assets under management, ROBO’s top holdings include the US dollar with a 2.80% weighting, followed by Harmonic Drive Systems Inc. with 2.38%, HIWIN Technologies Corp. with 1.85% and Teradyne, Inc. (TER) by 1.77%.
The ETF has a total of 79 holdings, with the top 10 assets accounting for 18.90% of assets under management. Net inflows were $58.94 thousand over the past five days. ROBO pays an annual dividend of $0.03, which translates to a yield of 0.05% at current price levels.
The fund is up 5.8% over the past six months, closing the last trading session at $57.69. It has a net asset value of $57.16 as of December 24, 2024.
ROBO’s POWR Ratings reflect its robust outlook. The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has an A grade for Buy & Hold and Trade. ROBO is ranked #24 out of 119 ETFs in the Technology Equities ETFs group.
Click here to see all POWR Ratings for ROBO.
ETF No. 1: Strengthening AI-Powered Stock ETF (AIEQ)
Launched and managed by Amplify Investments LLC alongside Tidal Investments LLC, AIEQ focuses on US public equity markets. The fund aims to deliver returns in line with the performance of the AI Powered Equity Index, using advanced AI strategies to guide its investment approach.
With $112.70 million in assets under management, AIEQ’s top holdings are NVDA with a 6.64% weighting, followed by Microsoft Corporation (MSFT) with a 6.36% weighting, KLA Corporation (KLAC) with a 3 weighting .54% and Texas Instruments Incorporated (TXN) with a weighting of 3.49%. weighing.
AIEQ has a total of 148 holdings, with the top 10 assets accounting for 36.62% of assets under management. In addition, AIEQ pays an annual dividend of $0.26, which translates to a yield of 0.63% at current price levels. Furthermore, the fund’s dividend payments have grown at a CAGR of 85.4% over the past three years.
The ETF is up 13.2% over the past six months and 12.7% over the past year to close the last trading session at $40.64. The net asset value of the fund as of December 26, 2024 was $40.60.
AIEQ’s POWR Ratings reflect its solid fundamentals. The fund has an overall rating of A, which represents a Strong Buy in our proprietary rating system.
AIEQ has an A grade for Buy & Hold and Trade. Within the A-rated All Cap Equities ETFs group, it ranks 46 out of 169 ETFs.
Click here to view all AIEQ POWR reviews.
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BOTZ stock was unchanged in premarket trading on Friday. Year-to-date, BOTZ is up 15.67%, versus the S&P 500 index’s 28.14% gain over the same period.
About the Author: Aanchal Sugandh
Aanchal’s passion for financial markets drives her work as an investment analyst and journalist. She received her bachelor’s degree in finance and is enrolled in the CFA program. She is adept at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns. More…
