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What the 10 AI-Themed ETFs Have in Common
Lesser known investments are found in companies that operate in oil and gas
Artificial intelligence has dominated the news cycle since the public debut of ChatGPT on November 30, 2022. Since then, many businesses and publicly-traded companies have publicly announced or aligned themselves as pro-AI or already-using AI in their current business to gain the acceptance of the public. But just how far and wide does AI go in the economy?
We analyzed 10 ETFs totaling USD 12.45 billion, and here are the trends we discovered.
AI goes hand-in-hand with robotics and automation
According to Fortune Business Insights, the artificial intelligence market was valued at $328B in 2021 and is projected to grow from $387B in 2022 to $1.4T by 2029. Regarding investments in AI, thematic ETFs are an intelligent place to survey what lies ahead. The most sizable AI-themed ETF is led by Cathie Wood's ARK Innovation ETF ARKK 0.00%↑, with a staggering $7.4B in net assets in their fund.
AI-themed ETFs go hand-in-hand with other advanced technologies like robotics and automation. As such, sectors like semiconductors, machinery, software, and IT services carry the upper hand when obtaining financial capital.
A non-popular view about AI is most people will never see or touch it because companies deploy AI as a tool rather than a product, like ChatGPT. Companies that offer consumer products or services in household durables, energy, consumer finance, and transportation have the smallest piece (less than 3%) of the investment pie from ETFs.
Assessing the portfolio holdings of the ten AI-themed ETFs, a handful of mega to large-cap companies are featured as receiving the bulk of investment capital. Nvidia NVDA 0.00%↑, Tesla TSLA 0.00%↑, Intuitive Surgical ISRG 0.00%↑, Keyence (KYCCF), and Cadence Design Systems CDNS 0.00%↑ are frequently the top holdings in these AI-themed ETFs.
Lesser known investments are found in companies that operate in oil, gas, consumable fuels, life sciences, and aerospace and defense.
Perhaps, the most surprising (or unsurprising) fact is the geographic region which receives the most amount of investment capital. United States leads by order of magnitude in the amount of investment capital. Japan is the next country with the biggest investment, followed by a string of Asian countries.
The Top 10 AI-Themed ETFs analyzed
AI Powered Equity ETF (AIEQ)
Net assets: $111M
AIEQ® applies AI technology to build predictive models on 6,000 U.S. companies. Each company has four underlying deep learning models: Financial, News and Information, Management, and Macro model. The models identify approximately 30 to 200 companies with the greatest potential over the next twelve months for appreciation.
AdvisorShares Let Bob AI Powered Momentum LETB 0.00%↑
Net assets: $25.8M
In the investment management industry, technology, automation, and access to unique data are key drivers for portfolio management success. The AdvisorShares Let Bob AI Powered Momentum ETF (LETB) incorporates these drivers into its investment strategy, analyzing a unique blend of fundamental data, including companies expected to exceed earnings estimates, digital sentiment, and strong technical price momentum. As a result, LETB's proprietary analysis results in a portfolio of select stocks the advisor believes will outperform.
ARK Innovation ETF ARKK 0.00%↑
Net assets: $7.4B
ARK defines "disruptive innovation" as introducing a technologically enabled new product or service that potentially changes how the world works. Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements, and advancements in scientific research relating to the areas of: DNA Technologies and the Genomic Revolution, Automation, Robotics, Energy Storage, Artificial Intelligence and the Next Generation Internet, Fintech Innovation.
ARK Next Generation Internet ETF ARKW 0.00%↑
Net assets: $1.2B
Companies within the ARKW are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media. These companies may develop, produce or enable: Cloud Computing & Cyber Security, E-Commerce, Big Data & Artificial Intelligence (AI), Mobile Technology and the Internet of Things, Social Platforms, Blockchain & P2P.
iShares Robotics and Artificial Intelligence Multisector ETF IRBO 0.00%↑
Net assets: $306M
The iShares Robotics and Artificial Intelligence Multisector 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.
ROBO Global Robotics & Automation ROBO 0.00%↑
Net assets: $1.3B
ROBO invests in global companies that are driving transformative innovations in robotics, automation, and artificial intelligence (RAAI), including companies that create technology to enable truly intelligent systems that can sense, process, and act and companies that apply those technologies to deliver RAAI-enabled products—including robots—to businesses and consumers.
Robotics & Artificial Intelligence ETF BOTZ 0.00%↑
Net assets: $1.72M
The Global X Robotics & Artificial Intelligence ETF (BOTZ) seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index (about index).
First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT 0.00%↑
Net assets: $231M
The First Trust Nasdaq Artificial Intelligence and Robotics ETF (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the Nasdaq CTA Artificial Intelligence and Robotics IndexSM (the "Index"). The Index is designed to track the performance of companies engaged in Artificial intelligence (AI), robotics, and automation.
Daily Robotics, Artificial Intelligence & Automation Index Bull (UBOT)
Net assets: $20M
UBOT tracks the Indxx Global Robotics and Artificial Intelligence Thematic Index (IBOTZNT). IBOTZNT is designed to provide exposure to exchange-listed companies in developed markets that are expected to benefit from the adoption and utilization of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments.
Global X Artificial Intelligence & Technology ETF AIQ 0.00%↑
Net assets: $133M
The Global X Artificial Intelligence & Technology ETF (AIQ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence & Big Data Index.
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