iShares Future AI & Tech ETF continues to outperform, rising 19.3% since August and doubling assets under management to over $2B. It maintains a concentrated portfolio focused on AI infrastructure—chips, hardware, and data centers—delivering strong momentum and sector-leading returns. Despite high volatility and premium valuation, ARTY offers exceptional liquidity and operational depth, justifying its role as a structural AI investment.
AI investment momentum remains strong, with ARTY ETF recovering from April lows and poised for new cycle highs by year-end. ARTY offers diversified AI exposure through blue-chip names at a reasonable 23x P/E, with double-digit long-term EPS growth and a fair PEG ratio. The ETF is concentrated in US large-cap growth and tech, carries higher volatility, and has a wide bid/ask spread—limit orders are recommended.
Investing in emerging industries like artificial intelligence (AI) can be risky. Past technology booms have taught investors that not every company survives, and picking the winners and losers isn't easy.
| ARCA Exchange | US Country |
The fund is an investment vehicle that aims to capitalize on the rapid expansion and potential of artificial intelligence (AI) technologies. It dedicates at least 80% of its assets to securities of companies listed in its underlying index. This index comprises both U.S. and international firms that are heavily involved in the development, production, and marketing of AI technologies and services. These include emerging fields such as generative AI, AI infrastructure, software solutions, and various services tied to the AI sector. The strategic focus on AI technology providers positions the fund to potentially benefit from the sector’s growth and innovation.
Investments in companies that are at the forefront of generative artificial intelligence, focusing on the creation of new content and data through AI algorithms. These technologies include AI that can create text, images, music, and other forms of media that resemble human-generated content. Generative AI has applications in a wide range of industries, from entertainment to design, making it a compelling area for growth.
The fund targets companies involved in developing the foundational components necessary for AI technologies to function, such as data processing units and cloud computing services. These infrastructural elements are crucial for training AI models and deploying AI solutions at scale, thereby serving as the backbone of the AI technology ecosystem.
Investment is also channeled into firms that are pioneering AI software solutions. This encompasses a broad array of applications, including machine learning platforms, AI-enabled analytics tools, and software that facilitates AI model development and deployment. Such software plays a key role in enabling businesses across various sectors to implement AI capabilities into their operations.
This segment includes companies that provide professional services related to AI, such as consulting, system integration, and managed services. These services help organizations to adopt and integrate AI technologies within their existing infrastructure and operations, thereby driving the adoption of AI across sectors.