The global market for artificial intelligence is set to skyrocket from $30 billion in 2020 to a whopping $300 billion by 2026, according to forecasts. If you believe in the potential of big data and AI, and are convinced that ChatGPT is poised to make a significant impact, or that robots will soon replace Uber drivers, consider exploring these big data ETFs.
AIQ: The ETF for Artificial Intelligence 🤖
Summary: Established in 2018, AIQ is a big data etf laser-focused on investing in businesses that have the potential to reap the benefits of AI and those that “facilitate the use of AI for the analysis of big data.” Their portfolio comprises 85 stocks, including big players like Nvidia (NVDA), which provides AI computing, and Microsoft (MSFT) and Google (GOOGL), who are currently developing their own versions of ChatGPT.
ROBO: The ETF for Robotic Automation
Summary: If you're convinced that autonomous vehicles will soon take over from your UBER driver or that drones will be the next big thing in package delivery, then the ROBO ETF is tailor-made for you! Founded in 2013, ROBO invests in the cream of the crop robotics and automation firms, as well as emerging technologies. One of its top holdings is Intuitive Surgical Inc (ISRG), a firm that develops robots to support surgeons in performing intricate medical procedures.
KOMP: The AI-assisted ETF
Summary: KOMP stands out by leveraging "artificial intelligence" to invest in companies that disrupt traditional industries with AI, robotics, and automation. With KOMP, you'll gain exposure to 15 different industries, with top holdings in Aerospace & Defense (10%), Semiconductors (6%), and Application Software (6%).
DTEC: The Generalist Big Data ETF
Summary: Although DTEC doesn't solely concentrate on big data and artificial intelligence, it allocates 10% of its portfolio to Robotics & AI and another 10% to Data & Analytics. If you're interested in investing in a big data ETF, but also want to diversify into other rapidly expanding tech sectors like 3D printing, Fintech, Mobile Payments, or Cybersecurity, then DTEC could be the perfect choice for you.
ARKW: The More Expensive DTEC
Summary: ARKW, similar to DTEC, does not exclusively focus on big data and artificial intelligence, but it is one of its six major themes alongside cloud computing & cybersecurity, e-commerce, mobile tech, social platforms, and blockchain. However, it is worth noting that ARKW is pricier compared to DTEC.
SHARE: Data Storage & Processing [BONUS]
Summary: This big data ETF is specifically focused on companies that provide infrastructure and tooling for data storage and processing, such as Snowflake (SNOW), Oracle (ORCL), and Twilio (TWLO). Unlike traditional ETFs, investors have the freedom to add or remove stocks from the portfolio, offering more control. Moreover, this ETF allows for dollar-cost averaging, enabling investors to schedule recurring investments of as low as $5 every week into this specialized basket of stocks.