Artificial Intelligence is the hottest buzzword in the tech industry. Industry leaders such as Google, Microsoft and Facebook are investing millions of dollars in AI research and development. Nvidia, a leading AI hardware and software company, has seen its stock soar as investors look to cash in on the AI boom.
However, investing in Nvidia can be a costly proposition. At over $500 per share, it is out of reach for many retail investors. But, there is another way to invest in AI that is both affordable and accessible.
One of the most exciting developments in the world of AI investing is the emergence of AI ETFs. These are exchange-traded funds that invest in companies that are involved in AI research, development, and implementation.
The largest and most established AI ETF is the iShares Robotics and Artificial Intelligence ETF (IRBO). This ETF has over $1 billion in assets and tracks the performance of the ROBO Global Robotics & Automation Index.
The index is comprised of companies that focus on AI and related technologies, including robotics, automation, and machine learning. Some of its top holdings include Amazon, Nvidia, and Alphabet.
The IRBO ETF has outperformed the S&P 500 in recent years, returning over 50% in the past year alone.
If you had invested $10,000 in the IRBO ETF at the beginning of 2020, your investment would be worth over $21,000 today. By comparison, investing $10,000 in Nvidia at the same time would have netted you a return of just over $12,000.
It's worth noting that past performance is not a guarantee of future returns and that investing in ETFs carries risks, including the risk of losing money.
Investing in AI ETFs offers several advantages over buying individual stocks. Here are three reasons to consider investing in AI ETFs:
By investing in an AI ETF, you are gaining exposure to a diversified portfolio of companies involved in AI research and development. This reduces the risk of investing in a single stock and provides access to a broad range of technologies and applications.
AI ETFs are managed by expert investors who understand the nuances of the industry. This allows them to make informed decisions about which companies to invest in and when to buy and sell.
As we mentioned earlier, investing in Nvidia can be costly. However, AI ETFs allow you to invest in AI for as little as a few hundred dollars. This makes it accessible to a wider range of investors and allows for greater flexibility in portfolio construction.
AI is transforming industries and creating new opportunities for investors all over the world. Investing in an AI ETF is an affordable way to gain exposure to this exciting and rapidly evolving field. By diversifying your portfolio with AI ETFs, you can access a broad range of companies and technologies while benefitting from the expertise of professional investors.
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Curated by Team Akash.Mittal.Blog
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