AIQ ETF Rides Tech Rebound to Outpace AI Fund Peers
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Global X Artificial Intelligence & Technology ETF (AIQ) is a passively managed ETF tracking an index of companies involved in AI and big data. Top holdings include Meta, Nvidia, Netflix, Amazon, and IBM.
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AIQ has significantly outperformed other AI-focused ETFs like IRBO and BOTZ over the past year as large cap tech rebounded. However, it has performed similarly to the Nasdaq Composite (QQQ).
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AIQ provides exposure to established US and foreign AI stocks. Allocation closely follows share of global AI development, although Japanese firms are underrepresented.
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Valuations appear high based on traditional metrics but growth expectations remain strong. Average P/E of 36.6x is slightly above QQQ.
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AIQ offers a way to gain exposure to immense expected AI growth. But with limited differentiation from QQQ, its 0.68% expense ratio seems high, especially for larger, long-term investments.