3 AI ETFs Changing The World – Investorplace.com

A cornerstone of the technology that is shifting the way we go about our lives is artificial intelligence (AI). Also known as machine intelligence or machine learning, AI is the development of computer-driven technology used to perform functions and tasks that previously required human intelligence. That said, AI ETFs are reaping the benefits.

Within the sprawling AI universe, there are four pillars: reactive machines, limited memory, theory of mind and self-awareness. An example of reactive machines would be the famous Deep Blue chess-playing supercomputer from IBM (NYSE:IBM) while autonomous and self-driving vehicles would be examples of technologies in the limited memory category.

Everyday applications of AI include Apples (NASDAQ:AAPL) SIRI, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) search algorithim and Amazons (NASDAQ:AMZN) Alexa.

Those are basic forms of AI, but they serve as evidence of the markets growth and utility. Investors can harness those trends and more by taking advantage of the opportunities in AI ETFs.

That said, lets take a look at a few.

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Expense Ratio: 0.75% per year, or $75 on a $10,000 investment

For investors looking for disruptive technology exposure, the actively managed ARK Innovation ETF (NYSEARCA:ARKK) fits the bill. The fund has a wide reach that encompasses not just pure AI, but industries using this next generation technology.

ARKK companies run the gamut of genomic firms, fintech providers, next generation internet (shared work and related infrastructure) and industrial innovation, among others. Like some other ARK funds, ARKK is know for its large weight to Tesla (NASDAQ:TSLA), which is more than 10%. However, it features plenty of other high fliers with dominant positioning in their respective markets, including Square (NYSE:SQ) and Illumina (NASDAQ:ILMN).

Moreover, some of ARKKs allure as an AI ETF is realized through its exposure to the deep-learning market a truly compelling long-term trend.

In fact, ARK believes that deep learning will be more impactful than the Internet:

The Internet created roughly $10 trillion in global equity market capitalization in 20 years. We believe that deep learning will have 3x that impact, adding $30 trillion to global equity markets over the next two decades.

Source: Shutterstock

Expense Ratio: 0.68% per year

The Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) is an established giant in the world of AI ETFs with over $1 billion in assets under management and a track record spanning nearly four years.

The fund holds 38 stocks and its top holding is Nvidia (NASDAQ:NVDA), a name with deep AI credibility. That stock accounts for the bulk of the semiconductor exposure in BOTZ. Underscoring this funds diversity, BOTZ features allocations to 14 industry groups, including chip makers.

Importantly, BOTZ provides exposure to increasing efficiencies in the AI universe. In turn, these are widely viewed as a vital long-term driver of AI investment outcomes.

In the past, training robotics was laborious and required time, capital, and engineering expertise, but AI simulators are becoming increasingly accurate at transferring learning to real world applications, according to Global X research. These simulators can run thousands of iterative processes in seconds, creating vast amounts of training data.

Source: Shutterstock

Expense Ratio: 0.40%

The Defiance Quantum ETF (NYSEARCA:QTUM) is one of the premier AI ETFs when it comes to accessing the deep and machine learning themes. The funds underlying benchmark the BlueStar Quantum Computing and Machine Learning Index provides robust exposure to those markets.

Home to 60 stocks, QTUMs index gives the fund a deeper bench than many competing AI ETFs. QTUM itself has 84 holdings.

QTUM components are involved in quantum computing, which data indicates QTUMs exposure to this burgeoning theme could be a positive long-term driver.

The global commercial quantum computing market is expected to reach $1.3 billion by 2027 at a compound annual growth rate (CAGR) of 52.9% from 2022 to 2027 and $161 million by 2022 from $33.0 million in 2017 at a CAGR of 37.3% for the period 2017-2022, notes BCC Research.

Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he did not hold a position in any of the aforementioned securities.

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3 AI ETFs Changing The World - Investorplace.com

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