Best AI ETF : How To Choose?

Best AI ETF : How To Choose?

Best AI ETF : How To Choose : With Artificial Intelligence exploding onto the financial markets and the global economy as a whole, many investors are asking the same question, how to invest in Artificial Intelligence?

Rebellion Research uses Artificial Intelligence to power our investment products, but often clients will want more. They will ask us how to put money into just “Artificial Intelligence firms.” So lately we have been looking at the best Ai ETF we can find and it isn’t easy as there benefits to each.

The first one that comes to eye would be the ticker: BOTZ, the Global X Robotics & Artificial Intelligence ETF. This ETF seeks to replicate the Global Robotics & Artificial Intelligence Thematic Index.

AI Investing

Another popular ETF for investors is the ticker: IRBO, the iShares Robotics and Artificial Intelligence Multisector ETF. This ETF seeks to offer the investment results of the NYSE® FactSet® Global Robotics and Artificial Intelligence Index.

Rebellion likes significant diversification, but we also do NOT like ETF managers that are discretionary. The whole purpose of an ETF is to avoid discretion of a human being and to allocate funds in a mathematical method.

It only takes one look in the energy sector at a popular ETF ticker: AMZA to see why a discretionary ETF manager can ruin returns.

From the Yahoo Finance section on AMZA returns we can see that the industry return FAR outpaces the AMZA return over 1, 3 and 5 year periods.

When picking an ETF make sure it tracks an index WITHOUT human discretion! For even the best investment thesis can be murdered by poor stock choices of the ETF managers.

Don’t let your great idea go to waste because your ETF manager makes bad allocations!

Best AI ETF : How To Choose?