Menu
August 8, 2023 : Amidst the crescendo of artificial intelligence (A.I.) investments, two distinguished ETF experts unveil alternative avenues for embarking on the A.I. journey, extending beyond the conventional domains of Big Tech. While renowned entities like Microsoft, Tesla, and Meta Platforms have captivated the investor landscape, the ever-evolving universe of A.I. presents many opportunities in uncharted territories.
Diversification, a coveted strategy among the prudent, also finds its resonance in A.I. investments. For those aiming to navigate the swells of the A.I. wave while straying from the beaten path of the technology sector, a compelling proposition beckons. Baird’s adept head of ETF trading, Rich Lee, and VettaFi’s astute head of research, Todd Rosenbluth, advocate exploring an array of industries basking in the radiance of A.I. This landscape reaches far beyond the conventional confines of technology.
The refrain of diversification echoes as the duo underscores that A.I.’s tendrils entwine with diverse sectors. Notably, healthcare emerges as a beneficiary of this dynamic convergence. A resonant crescendo resounds in Lee’s assertion, “We’re seeing trends towards health care. We’re seeing eCommerce companies.” A narrative of persistent flows surges toward the robotics realm, further fueling A.I.’s pervasive penetration. Garnering the spotlight are ETFs like the Global Robotics and Automation Index ETF (ROBO) and the Global X Robotics & Artificial Intelligence ETF (BOTZ), both embodying the entwined narratives of A.I. and industrial prowess. The symphony of industry resonates as these ETFs have surged by 21% and more than 34%, respectively, year to date.
Embracing a broader vista, fintech, an emerging paradigm, unfurls as a future beneficiary of A.I.’s magic touch. The narrative pivots, envisioning A.I. as an instrumental force amplifying the proficiency of financial technology. As Rosenbluth asserts, “It’s going to help advisors do their jobs better, it’s going to help investors sort through information better, it’s going to help to process.” The symphony of A.I. resonates through the finance conduits, fortifying the interface between human insight and machine efficiency.
Casting a wide net, the industrial sector emerges as an unexpected beneficiary of A.I.’s transformative touch. Looming on the horizon is a realm where industrial companies, driven by the quest for enhanced processing and operational efficacy, embrace A.I. as an integral facet of their modus operandi. With unerring insight, Rich Lee articulates, “[Industrial companies] are looking for better processing through automation… To realize some of these gains, they must look at A.I. as part of their business processes.” In this symphony of industry, A.I. orchestrates efficiency in the wings, promising a harmonious confluence of human ingenuity and mechanized precision.
Indeed, A.I.’s siren song transcends traditional tech domains’ realms, serenading unheard harmonies in sectors once tangential. The experts’ proclamation, vividly echoing, “So, we’re going to see A.I. creep into other sectors and industries we may not traditionally associate with tech or A.I.,” resonates as a clarion call to embrace the multifaceted splendor of the A.I. saga.
