We’ve spoken a lot about the AI boom.
And how by 2030, the industry could be worth north of $1.8 trillion, according to Grand View Research. We even mentioned three rock star stocks running on the AI boom including C3.AI (AI), Splunk (SPLK), Palantir (PLTR).
But there’s another way to potentially benefit from the boom—with ETFs.
Not only do ETFs allow you to diversify with dozens of top AI names, they allow you to do so at a lower cost. For example, the Global X Robotics & Artificial Intelligence ETF (BOTZ) offers exposure to 42 stocks. It traded at $24.15. If I were to buy 100 shares of the ETF, it would cost me $2,415. However, if I were to buy just one of the top BOTZ holdings – Nvidia, for example, it would cost me $22,400 for just that one stock.
That’s one of the key benefits to owning ETFs, as compared to an individual stock.
So, if you want great exposure to AI, take a look at these ETFs.
The Global X Robotics & Artificial Intelligence ETF (BOTZ)
With an expense ratio of 0.68%, this ETF invests in companies that could 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. Some of its top holdings include Nvidia, SMC Corp., ABB Ltd., and Cognex Corp., for example.
The iShares Robotics and AI Multi Sector ETF (IRBO)
With an expense ratio of 0.47%, the ETF invests in companies benefiting from growth and innovation in robotics technologies and artificial intelligence. Some of its top holdings include IQIYI, Hell Group, Sumo Logic, Spotify, Meta Platforms, and Baidu.
First Trust NASDAQ Artificial Intelligence & Robotics ETF (ROBT)
With an expense ratio of 0.65%, the ETF 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 Index, as noted by First Trust. Some of its top holdings include C3.AI, AutoStore, Ambarella, Atos, NICE Ltd., and Dynatrace Inc.