Updated 19.7.2023 16:00
With the AI Boom in Full Swing, Investing in the Artificial Intelligence Sector Could Make For an Attractive Addition to Your Portfolio
With ETFs offering investors an easy way to gain exposure to an entire sector in a single investment, here are three top AI ETFs to help you beat the market in 2o23.
Investing in Artificial Intelligence (AI) comes with potential benefits that could make it an attractive sector for many investors.
Here are some of the reasons why investing in AI might be a good idea:
- Growth Potential: AI is a rapidly growing field with significant future potential. Companies specializing in AI development could see considerable growth as more industries and sectors incorporate AI technologies into their operations.
- Wide Application: AI is increasingly integrated into various sectors, including healthcare, finance, automotive (self-driving cars), retail (recommendation systems), and many more. This wide range of applications indicates that demand for AI technology will continue to increase.
- Efficiency and Productivity: AI has the potential to significantly boost efficiency and productivity in many areas of the economy, making businesses more profitable and potentially leading to higher stock prices for companies in the AI space.
Competitive Advantage: Companies that effectively utilize AI may gain a competitive edge over their rivals, which could translate into higher profits and share prices.
- Technological Advancement: AI is at the forefront of technological advancement. Investing in AI means investing in the future of technology, which can be both exciting and potentially profitable.
However, investing in AI also comes with its risks. The technology is still developing, and there is regulatory uncertainty. Many AI companies are in the startup phase and may not be profitable. Additionally, as with any investment, there’s the risk that the company or fund you invest in will not perform as expected, leading to potential losses.
Source: Optimized Portfolio YouTube
In our previous article, “Ride the AI Boom With These 5 Tech Stocks,” we discussed why investing in blue-chip tech stocks with AI investments was likely the better strategy than investing in riskier AI startups. Even so, there is still a long list of blue-chip tech stocks for investors to choose from.
As a result, many investors looking to gain exposure to the booming AI sector may find investing in AI ETFs a better option.
With a single ETF able to offer investors diversified exposure to the AI sector, let’s look at three top AI ETFs to add to your portfolio in 2023.
The BOTZ ETF invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
Shares of BOTZ last traded at $28.94 per share, down -1.16% on the day. YTD, BOTZ ETF is up +40.15%.
The ROBO ETF tracks an index of global stocks focused on the robotics and automation industry. The fund selects stocks with market caps above $200 million.
Shares of ROBO last traded at $57.97 per share, down -0.45% on the day. YTD, ROBO ETF is up +24.48%.
The IRBO ETF seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from long-term growth and innovation in robotics technologies and artificial intelligence.
Shares of IRBO last traded at $32.60 per share, down -1.45% on the day. YTD, IRBO ETF is up +26.41%.
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks or ETFs mentioned in this article.