AI and Tech ETF Beats Market on Big Tech and AI Stock Bets, But Future Growth Not Guaranteed
-
The Global X Artificial Intelligence and Technology ETF (AIQ) holds shares in 84 companies that stand to benefit from AI, including tech giants like Nvidia, Meta, Amazon, and Microsoft.
-
The ETF's top 10 holdings make up 33% of its portfolio value, including leading AI stocks Nvidia, Meta, Netflix, Amazon, Oracle, Tencent, Qualcomm, IBM, Salesforce, and Broadcom.
-
The ETF has delivered market-beating returns compared to the S&P 500 over the past 1 and 5 years, as the AI industry continues its rapid growth.
-
Goldman Sachs estimates AI will add $7 trillion to the global economy in the next decade, presenting a big growth opportunity for stocks exposed to the space.
-
There is risk of underperformance if AI adoption does not accelerate as expected, so the ETF may be best as part of a diversified portfolio rather than an outright AI bet.