Will 2024 see AI continue to drive markets forward as forcefully as it did in 2023? That’s one of the big questions facing equity investors in a market shadowed by inflation and the lagging impact of high rates. AI, of course, not only presents a medium-term growth opportunity for all kinds of industries but also represents a long-term source of tech disruption. Investors on the lookout for AI-focused firms may want to take a closer look at the ROBO Global Artificial Intelligence ETF (THNQ ).
What kind of firms does THNQ target? The strategy from ROBO Global tracks the ROBO Global Artificial Intelligence Index for a 68 basis point (bps) fee. In doing so, it looks for global firms working in AI tech and infrastructure, identifying firms based on a proprietary database maintained by the provider. It also assesses firms based on whether they fit into subsectors like big data, network and security, automation, semiconductors, and more.
3 Firms in AI ETF THNQ
That leads to THNQ investing in firms like Illumina Inc. (ILMN) which, for example, offers AI software to assess potential genetic problems in patients. PrimateAI-3D, its AI algorithm, saw results of its approach published in Science last year.
It also invests in major names like Nvidia (NVDA) which of course continues to play a major role in the AI ecosystem. Thanks to its provision of powerful chips that empower software developers to push limits, it looks likely to be a continued play for 2024 among tech-focused investors.
Finally, THNQ currently weights fabless semiconductor firm Ambarella (AMBA) at 2%. AMBA focuses on image and video compression as well as computer vision processors. With AI chatbots moving into video, for example, such capabilities could play an important role in 2024 and beyond.
THNQ gives those three and all the firms it holds an individual score based on AI revenue. Firms receiving a grade of 50 or greater and that meet liquidity and market cap totals are eligible for inclusion. Taken together, AI ETF THNQ presents a solid option for those looking to invest in AI moving forward.
For more news, information, and analysis, visit the Artificial Intelligence Channel.
VettaFi LLC (“VettaFi”) is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.