Interested in AI Stocks in 2025? Consider This Top-Performing ETF
Sunday, Jan 12, 2025 9:14 am ET
3min read Artificial intelligence (AI) has emerged as a powerful force in the tech industry, with companies like Nvidia, Alphabet, and Microsoft leading the charge. If you're interested in investing in AI stocks but don't want to pick individual stocks, consider investing in an AI-focused exchange-traded fund (ETF). AI ETFs provide exposure to a broad range of AI companies, making it easier to diversify your portfolio and reduce risk.
One of the top-performing AI ETFs to consider is the Global X Robotics & Artificial Intelligence ETF (BOTZ). BOTZ focuses on companies that benefit from the adoption and use of robotics and AI, including industrial robotics, automation, non-industrial robots, and autonomous vehicles. Some of the top holdings in BOTZ include Nvidia, AMD, and Intuitive Surgical.
BOTZ has shown strong performance in recent years, with a 5-year return of over 150%. However, it's important to note that AI is a relatively new and volatile sector, so there is still some risk involved in investing in AI ETFs.
BOTJ Interval Closing Price
| Name |
|---|
| Date |
| Interval Closing Price(USD) |
| Bank Of The James FinancialBOTJ |
| 20200110-20250110 |
| 12.50 |
Another AI ETF to consider is the iShares U.S. Technology ETF (IYW). IYW focuses on U.S. companies involved in electronics, hardware, and IT sectors, but a significant portion of its portfolio is in AI companies. Some of the top holdings in IYW include Apple, Microsoft, and Alphabet.
IYW has also shown strong performance in recent years, with a 5-year return of over 100%. However, like BOTZ, IYW is subject to the same risks and volatility associated with the AI sector.
When considering AI ETFs, it's important to look at the expense ratio, which is the annual fee charged by the ETF. A lower expense ratio means more of your investment goes towards the underlying stocks, rather than fees. Both BOTZ and IYW have relatively low expense ratios, at 0.68% and 0.47%, respectively.
Ultimately, the best AI ETF for you will depend on your investment goals, risk tolerance, and personal preferences. Both BOTZ and IYW are strong options, but there are many other AI ETFs available as well. Be sure to do your own research and consider consulting with a financial advisor before making any investment decisions.
In conclusion, AI ETFs offer a convenient and diversified way to invest in the growing AI sector. By investing in an AI ETF, you can gain exposure to a broad range of AI companies and reduce the risk of picking individual stocks. Consider the Global X Robotics & Artificial Intelligence ETF (BOTZ) and the iShares U.S. Technology ETF (IYW) as two top-performing AI ETFs to consider, but be sure to do your own research and consider your personal investment goals before making any decisions.
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