IRBO ETF now more skewed towards large cap, AI-related stocks with high valuations. Disillusionment in AI market may mean some of the current revenue is non-recurring for the industry. The basis for major LLMs is training to be convincing, not correct.
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The company operates as an investment fund that focuses on the burgeoning field of artificial intelligence (AI). It commits at least 80% of its assets to securities within its underlying index, which includes a mix of U.S. and international companies. These companies are at the forefront of developing and offering products and services integral to AI technologies. The investment strategy aims to tap into the growth potential of AI across various sectors, recognizing its transformative impact on industries worldwide.
This category includes investments in companies that are pioneering generative AI technologies. Generative AI refers to algorithms that can generate novel content, such as text, images, or music, based on the data they are trained on. These technologies are leveraging AI's creativity to innovate in fields such as digital art, content creation, and interactive entertainment.
Companies within this segment provide the foundational elements necessary for AI technologies to function and scale. This includes data collection and processing services, as well as the infrastructure needed to train complex AI models. Investments in this area ensure the fund is exposed to the critical backbone of the AI industry, which includes cloud computing platforms, advanced processors, and data storage solutions.
This area focuses on companies developing software applications leveraging AI for various uses, from business intelligence and analytics to customer service and automation. AI software is transforming how businesses operate, offering insights and efficiencies that were previously unattainable. The fund's investment in AI software companies positions it to benefit from the widespread adoption and integration of AI across corporate landscapes.
The fund also invests in companies that provide AI-powered services. These can range from consulting and implementation services to managed services overseeing AI infrastructure and applications. As organizations seek to incorporate AI into their operations, the demand for expert services in deploying, maintaining, and optimizing AI solutions is growing, making this a critical area of focus for the fund.