VettaFi head of research Todd Rosenbluth appeared on Yahoo! Finance to discuss ETFs with unexpected demand — including AI-focused ETFs.
AI Continues to Garner Interest
AI continues to be a hot topic as investors brace for what could be a revolutionary technology. Given its potential to change how investments are made, AI is already an important topic for advisors to grapple with. Additionally, it is also an investment theme. Companies like Nvidia and Microsoft are often targeted, but ETFs can be used to get exposure as well. Several ETFs zero in on the companies that are pushing the technology forward or benefiting from it. One such ETF is the Global X Artificial Intelligence & Technology ETF (AIQ).
Spreading the Risk
“The benefits of using a diversified ETF like AIQ spread that risk around,” Rosenbluth noted. He added, “This is a megatrend,” noting that investor interest in AI has been skyrocketing on the VettaFi platform. “It is one of the reasons we at VettaFi are hosting an AI symposium at the end of the month.”
AIQ holds many heavyweights in the growth space, according to Rosenbluth, including Amazon and Alphabet. He observed that although these aren’t technology firms per se, they stand to benefit from the widespread adoption of AI. “We think AI is [a] long-term megatrend and the future is really now. We’re hearing it from the companies, and we’re seeing investors really gravitate toward learning about these ETFs,” he added.
