AI has been one of the biggest stories of the year so far. At a time when the earnings narrative had cast doubt on tech investing, AI’s potential lifted the market. Artificial intelligence is more than just hype, however, and will impact sectors as diverse as agriculture, cloud computing, and robotics. For investors looking to play AI’s impact, active disruptive ETFs can provide one route in.
Investors may be familiar with how AI boosting computing overall will help names like NVIDIA (NVDA) and Microsoft (MSFT). The former, which has already grown a lot this year, offers ever-stronger semiconductor processing power that can benefit from the dawn of popular AI. AI tech is also set to boost industrial automation at firms like robotics automation company Fanuc Corporation (FANUY).
However, AI’s impact may extend further than the obvious industries where robots can help, whether tilling cornfields or building cars. Customer relationship management (CRM) software firm HubSpot (HUBS) recently announced an AI tool to help small businesses. With an AI chatbot, business owners can quickly craft the right message or website to reach new audiences.
In fact, investors can think of AI’s impact across as many as five different themes accessible by Fidelity’s recent thematic ETF suite. That includes the aforementioned areas in ETFs like the Fidelity Disruptive Automation ETF (FBOT) and the Fidelity Disruptive Technology ETF (FDTX). Both ETFs hold NVDA, for example, while HUBS appears in the latter with MSFT. FANUY, meanwhile, can be found in FBOT according to data platform LOGICLY.
That suite also includes communications, finance, and medicine-focused offerings which will also see AI benefits in the years to come. Whether that’s via AI research assistants helping discover cures for the world’s toughest diseases or helping investors, AI’s reach extends outside of tech investing.
For those looking for somewhere to start, the active disruptive ETF pairing of FBOT and FDTX offers a place to start. FBOT actively invests in global disruptive automation firms, including industrial robotics as well as firms focused on autonomous driving. FDTX, meanwhile, looks to both hardware and machine learning AI flavors for its investments. Both active disruptive ETFs charge 50 basis points, and both already hold more than $100 million in AUM.
Fidelity’s investment teams and researchers from Fidelity Center for Applied Technology bring significant AI knowledge to the investing space. For those investors looking for managers backed up by that expertise, Fidelity’s active disruptive ETFs, FBOT & FDTX, merit a closer look.
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