4 ETFs that Bet on AI
From Morningstar:
Nvidia’s impressive financial results highlight the increasing demand for computing power in artificial intelligence. The company benefits from providing graphic processors for AI models, but other firms in the industry are also capitalizing on this trend. Investing in AI-themed ETFs offers a diversified way to benefit from this technology’s growth.
Morningstar data identifies four highly-rated AI-themed ETFs available in Europe. These ETFs offer a cost-effective and potentially rewarding exposure to the AI trend, though they are relatively new in the market. Thematic ETFs can be volatile due to their specific focus, requiring careful consideration before investing.
Some AI-themed ETFs have significant holdings in well-known companies like Nvidia and Microsoft. However, the Wisdom Tree Artificial Intelligence ETF takes a different approach by emphasizing lesser-known companies like PKSHA Technology and SentinelOne. Diversifying through ETFs can help mitigate risks associated with concentrating investments in individual stocks, contributing to a more balanced portfolio.
Read moreMorningstar: 4 ETFs that Bet on AI