Todd Rosenbluth appeared on Bob Pisani’s “ETF Edge” to discuss AI ahead of the coming AI Symposium.
AI ETFs have been seeing incredible performance. “No matter how you slice it, any ETF with AI is outperforming this year,” Pisani said. He continued, “It doesn’t matter if it is index-based or actively managed. It doesn’t matter if it’s market-cap-weighted or equal-weighted.” The S&P 500 is up 19% year-to-date, but some AI ETFs are seeing almost double that performance.
I, Robotics Investor
ETFs such as the Global X Artificial Intelligence & Technology ETF (AIQ) cover a lot of the standard bases in terms of AI stocks. Companies such as Nvidia, Microsoft, and Tesla are common exposures. However, investors are wondering how AI investing can broaden out. “In the last four months, we’ve seen consistent flows and trends towards robotics and AI ETFs,” Rosenbluth said, pointing to the ROBO Global Robotics & Automation Index ETF (ROBO) and the Global X Robotics & Artificial Intelligence ETF (BOTZ). Because these ETFs aren’t exclusively looking at AI, but also include firms that have an interest in automation and robotics, it allows for investors to get more diverse exposure.
Many Ways to Play AI and Robotics
Rosenbluth also noted that healthcare companies like Intuitive Surgical are also benefiting from robotics. On the AI front, there are e-commerce companies such as eBay that are also finding a lot to be excited about in terms of what AI can do for their business. Rosenbluth shared, “You can invest in companies that are targeted to [AI] and companies that are directly benefiting from it.”
Rosenbluth added that active managers will have the ability to broaden our exposure to industries and companies that are actively benefiting from AI, noting that “they have the ability to swing in certain directions based on what trend is in favor and what trend is out of favor.”