ETFs
4 ETFs to exploit the emergence of disruptive technologies – June 21, 2024
In a rapidly evolving technological environment, the term “disruptive technology” has become a catchword, denoting innovation that significantly changes the way industries, businesses and consumers operate. Disruptive technologies challenge the status quo, replace established methods and create new markets.
Key examples of booming disruptive technologies include Artificial Intelligence (AI) and Machine Learning (ML), Blockchain Technology, Internet of Things (IoT), Renewable Energy Technologies, 3D Printing , cybersecurity, quantum computing, etc.
Disruptive technologies like AI, genomics and telemedicine are transforming healthcare. Fintech innovations, including blockchain, AI and mobile payments, are redefining the financial sector. Autonomous vehicles, electric cars and carpooling platforms are revolutionizing transportation.
E-commerce, augmented reality (AR), and AI-driven personalization have already begun to disrupt the retail industry for a long time. Meanwhile, online learning platforms, AI-based tutoring and virtual reality (VR) are changing the education system.
Cybersecurity protects information and systems against major cyber threats such as terrorism, war and espionage, targeting national assets, making it crucial to government security strategies. In fact, the culture of confinement induced by Covid-19 has further accentuated and reinforced the need for certain forms of disruptive technologies.
In this context, below we present some ETFs that can be used to address the emergence of disruptive technologies.
Focus on ETFs
ALPS Disruptive Technologies ETF (DTEC quick quoteDTEC – Free report)
This ETF invests in companies that are leading the way in disruptive technologies, covering areas such as artificial intelligence, robotics and blockchain. Through a diversified approach, DTEC provides exposure to a broad range of innovative companies and has an expense ratio of 0.50%.
GraniteShares Nasdaq Select Disruptors ETF (Quick quote DRUPDRUP – Free report)
This is an ETF that aims to invest in large-cap US companies that are at the forefront of technological and disruptive advancements. The ETF focuses on companies recognized as leaders in disruptive innovation at different stages of their business lifecycle, including inception, expansion and maturity. It uses a multi-factor scoring model to select and rank these companies based on their “disruption scores”. The fund charges 60 basis points in fees.
ARK Innovation ETF (Quick quote ARKKARKK – Free report)
This actively managed ETF focuses on companies involved in disruptive innovation across various sectors, including genomics, automation and energy. Top holdings include Tesla, Square and Spotify. ARKK is known for its high risk, high reward profile and has an expense ratio of 0.75%.
Global X Artificial Intelligence and Technology ETF (Quick quote AIQAIQ – Free report)
The fund is designed to provide exposure to companies in developed markets that are positioned to benefit from the further development and deployment of artificial intelligence technology, as well as companies that provide technologies and services critical to analytics large and complex data sets. The fund charges 68 basis points in fees.