ETFs
Artificial Intelligence ETFs: Have They Beat the Market in 2024? – Autodesk (NASDAQ: ADSK), ABB (OTC: ABBNY)
May 29, 2024 2:22 p.m. | 2 minutes of reading
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Artificial intelligence companies have captivated markets as proliferation of AI appears to be a major disruptor in several sectors. Investors have invested funds in AI exchange-traded funds (ETFs) to diversify their portfolios.
The largest AI ETFs are Global X Robotics and Artificial Intelligence ETF (NASDAQ:BOTZ), THE Global X Artificial Intelligence and Technology ETF (NASDAQ:AIQ) and the ETF ROBO Global Robotics And Automation (ASX:ROBO). A question to ask is: did they beat the global market?
BOTZ ETF: According to data compiled from etf.com, the BOTZ ETF is the largest AI ETF with $2.76 billion in assets under management. BOTZ has appreciated by 10.63% since the start of 2024.
BOTZ’s largest holdings are NVIDIA Corp. (NASDAQ:NVDA),10.45%; ABB AG (OTC:ABBY), 9.24% and Intuitive Surgical, Inc. (NASDAQ:ISRG), 8.24%, all of which performed well in 2024. Other stocks such as UiPath Inc. (NYSE:PATH) And Fanuc ADR (OTC:FANUY) underperformed.
Read also: Chip Stocks on the Rise: Nvidia, Micron and Qualcomm Drive SMH and SOXX ETFs to New 52-Week Highs
AIQ ETF: The AIQ ETF has $1.88 billion in assets under management while enjoying by 10.33% since the start of 2024.
The largest of AIQ assets are at NVIDIA, 4.84%; Tencent Holdings Ltd.. (OTC:TCEHY), 3.97% and Qualcomm Inc. (NASDAQ:QCOM), 3.66%: these stocks outperformed the market in 2024.
ROBO ETF: The ROBO ETF has $1.27 billion in assets under management; ROBO has negotiated down 0.94% in 2024.
ROBO’s holdings are more equally weighted than their AI ETF counterparts. ROBO was not able to capitalize as much on NVIDIA’s performance since it only represents 1.82% of the ETF’s assets. Assets such as Autodesk, Inc. (NASDAQ:ADSK), 0.95% and OMRON Corp. (OTC:OMRNY), 1.25%, are decreasing in 2024.
S&P 500 performance: None of the aforementioned AI ETFs were able to outperform the SPDR S&P 500 ETF Trust (NYSE:TO SPY), which tracks a diverse assortment of 500 of the largest U.S. stocks. The S&P has appreciated by 11.46% in 2024. Much of the performance of the S&P 500 can be assigned to its increasingly high weight in technology giants like NVIDIA, 5.79%; Microsoft Corp. (NASDAQ:MSFT), 7.17% and Amazon.com Inc. (NASDAQ:AMZN), 3.74%.
(Share price data taken at the time of writing on Wednesday.)
Check out: The average American couple has saved this much money for retirement – How to compare?
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