The AI infrastructure buildout is accelerating across semiconductors, cloud computing, and software applications.
AI-fueled record Black Friday spending and soaring e-commerce traffic may lift AI-focused ETFs like IYW, AIQ, FDN, XT and BOTZ amid strong tech and online retail demand.
Three years after the launch of ChatGPT, we are at a crucial juncture when it comes to investing in innovation. On the one hand, given the billions being invested in infrastructure, there are fears about an AI bubble or investors getting over-enthusiastic relative to what is actually possible. On the other hand, the ecosystem is broadening with OpenAI signing deals with more companies, other than the Mag 7, while the U.S. government is committed to AI development.
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The fund is specifically focused on investing a significant portion of its assets into securities that are directly associated with companies engaged in the realms of artificial intelligence (AI) and big data. With the goal of mirroring the performance of the underlying index, this fund prioritizes investments in sectors that are pioneering or significantly utilizing AI and big data technologies. By allocating at least 80% of its total assets towards such securities, the fund commits to being at the forefront of technological and digital advancements. It should be noted that the fund operates on a non-diversified basis, concentrating its investments more narrowly than diversified funds, which may lead to higher volatility and risk exposure.
The primary offering involves investing in securities, such as stocks or bonds, of companies that are heavily involved in the research, development, and practical application of artificial intelligence and big data analytics. This approach allows investors to gain exposure to the growth potential of the AI and big data sectors, which are considered key drivers of the fourth industrial revolution.