Whether society is ready for it or not, artificial intelligence is just one of the various types of disruptive technologies that will be next wave of innovation. For investors who missed out on the run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, they can look to capitalize on disruptive tech options like artificial intelligence.
Furthermore, AI is not relegated to certain sectors as it will permeate into all industries in some form or fashion. How much of a disruptor will AI be in 2019 and beyond?
In early 2018, technology mogul Elon Musk, founder of SpaceX and co-founder of Tesla, sat down with the Artificial Intelligence Channel to discuss his thoughts on AI as it relates to his neurotechnology company Neuralink. Musk wryly responded to the notion that a lot of experts in the AI space do not share his views on the subject.
“Fools,” retorted Musk. “They (smart people) don’t like the idea that a machine could be way smarter than them so they discount the idea, which is fundamentally flawed. It’s the wishful thinking situation.”
In fact, Musk told the World Government Summit in a February meeting last year that humans need to avoid becoming redundant as technologies like AI become a common reality. With that in mind, here are the 10 biggest artificial intelligence-focused exchange-traded funds (ETFs) as of April 22, 2019 via ETFdb:
Largest AI ETFs (By AUM)
| Symbol | ETF Name | Asset Class | Total Assets ($MM) | YTD | Avg Volume | Previous Closing Price | 1-Day Change |
|---|---|---|---|---|---|---|---|
| (QQQ ) | Invesco QQQ | Equity | $74,421.34 | 22.04% | 31,856,700.00 | $187.92 | 0.28% |
| (VGT ) | Vanguard Information Technology ETF | Equity | $20,557.70 | 26.88% | 543,889.00 | $211.04 | 0.31% |
| (XLK ) | Technology Select Sector SPDR Fund | Equity | $20,367.93 | 26.25% | 12,612,032.00 | $78.00 | 0.23% |
| (FDN ) | First Trust Dow Jones Internet Index | Equity | $8,909.55 | 23.44% | 653,781.00 | $144.00 | 1.17% |
| (IYW ) | iShares U.S. Technology ETF | Equity | $4,272.11 | 26.62% | 146,622.00 | $202.07 | 0.54% |
| (IXN ) | iShares Global Tech ETF | Equity | $2,569.14 | 24.61% | 117,052.00 | $179.47 | -0.06% |
| (XT ) | iShares Exponential Technologies ETF | Equity | $2,420.66 | 16.33% | 136,603.00 | $38.69 | 0.03% |
| (FTEC ) | Fidelity MSCI Information Technology Index ETF | Equity | $2,391.48 | 27.09% | 270,543.00 | $62.39 | 0.34% |
| (BOTZ ) | Global X Robotics & Artificial Intelligence Thematic ETF | Equity | $1,745.20 | 29.15% | 778,891.00 | $21.62 | -0.69% |
| (IGM ) | iShares Expanded Tech Sector ETF | Equity | $1,693.16 | 26.62% | 36,046.00 | $217.13 | 0.62% |
| (ROBO ) | ROBO Global Robotics and Automation Index ETF | Equity | $1,478.13 | 28.33% | 189,338.00 | $41.77 | 0.12% |
| (PNQI ) | Invesco NASDAQ Internet ETF | Equity | $587.43 | 27.34% | 23,195.00 | $139.86 | 0.87% |
| (QYLD ) | Global X NASDAQ 100 Covered Call ETF | Equity | $511.56 | 10.95% | 196,987.00 | $23.01 | 0.22% |
| (ARKQ ) | ARK Industrial Innovation ETF | Equity | $184.44 | 19.13% | 24,675.00 | $35.13 | -0.54% |
| (AIEQ ) | AI Powered Equity ETF | Equity | $146.31 | 22.05% | 43,881.00 | $26.54 | 0.08% |
1. Invesco QQQ Trust (QQQ)
The Invesco QQQ Trust is based on the Nasdaq-100 Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The Fund and the Index are rebalanced quarterly and reconstituted annually.
2. Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index.
3. Technology Select Sector SPDR Fund (XLK)
The Technology Select Sector SPDR Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Technology Select Sector Index.
4. First Trust Dow Jones Internet Index (FDN)
The First Trust Dow Jones Internet Index Fund is an exchange-traded index fund. The Fund seeks investment results that correspond generally to the price and yield , before the Funds fees and expenses, of an equity index called the Dow Jones Internet Composite Index.
5. iShares U.S. Technology ETF (IYW)
The iShares U.S. Technology ETF seeks to track the investment results of an index composed of U.S. equities in the technology sector. The Fund seeks investment results that correspond to the performance of the Dow Jones U.S. Technology Index. The Fund will concentrate its investments in the technology sector of the U.S. market to approximately the same extent the Index is so concentrated.
6. iShares Global Tech ETF (IXN)
The iShares Global Tech ETF seeks to track the investment results of an index composed of global equities in the technology sector. The Fund seeks investment results that correspond to the performance of the SP Global Information Technology Sector Index.
7. iShares Exponential Technologies ETF (XT)
The iShares Exponential Technologies ETF seeks to track the investment results of an index composed of developed and emerging market companies that create or use exponential technologies.
8. Fidelity MSCI Information Technology Index ETF (FTEC)
The Fidelity MSCI Information Technology Index ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Information Technology Index. Investing at least 80% of assets in securities included in the funds underlying index. The fund’s underlying index is the MSCI USA IMI Information Technology Index, which represents the performance of the information technology sector in the U.S. equity market.
9. Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)
The Global X Robotics and Artificial Intelligence ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics and Artificial Intelligence Thematic Index.
10. iShares Expanded Tech Sector ETF (IGM)
The iShares North American Tech ETF seeks to track the investment results of an index composed of North American equities in the technology sector. The ETFs objective is to achieve investment results that correspond to the performance of the SP North American Technology Sector Index.
11. ROBO Global Robotics and Automation Index ETF (ROBO)
The ROBO Global Robotics and Automation Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the ROBO Global Robotics and Automation Index (the Index).
12. Invesco NASDAQ Internet ETF (PNQI)
The Invesco NASDAQ Internet ETF is based on the NASDAQ Internet Index. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of the largest and most liquid US-listed companies engaged in internet-related businesses and that are listed on one of the major US stock exchanges. The Underlying Index employs a modified market capitalization-weighted methodology based on the market capitalization ranking of the Underlying Index securities. The Fund and the Index are rebalanced and reconstituted quarterly.
13. Global X NASDAQ 100 Covered Call ETF (QYLD)
The Global X Nasdaq 100 Covered Call ETF follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index.
14. ARK Industrial Innovation ETF (ARKQ)
The ARK Industrial Innovation ETF seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and U.S. exchange traded foreign equity securities of companies that are relevant to the Funds investment theme of industrial innovation.
15. AI Powered Equity ETF (AIEQ)
The AI Powered Equity ETF seeks to provide investment results that exceed broad U.S. Equity benchmark indices at equivalent levels of volatility. The fund typically invests in 40-70 names but analyzes and compares thousands of U.S. companies on a daily basis to find and optimize exposures within the portfolio.
For more thematic investing trends, visit our Thematic Investing Channel.
