ETFs

Have they beaten the market in 2024? — TradingView News

Published

11 months ago

29 May, 2024

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 BOTZTHE Global X Artificial Intelligence and Technology ETF AIQ and the ETF ROBO Global Robotics And Automation ROBOT. A question to ask is: did they beat the global market?

BOTZ ETF: According to data compiled on 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. NVDA.10.45%; ABB AG ABBY9.24% and Intuitive Surgical, Inc. ISRG8.24%, all of which performed well in 2024. Other stocks such as UiPath Inc. PATH And Fanuc ADR FANUY underperformed.

AIQ ETF: The AIQ ETF has $1.88 billion in assets under management while appreciating 10.33% since the start of 2024.

AIQ’s largest holdings are NVIDIA, 4.84%; Tencent Holdings Ltd.. TCEHY3.97% and Qualcomm Inc. QCOM3.66%: these stocks outperformed the market in 2024.

ROBO ETF: The ROBO ETF has $1.27 billion in assets under management; ROBO trades 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. ADSK0.95% and OMRON Corp. OMRNY1.25%, 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 TO SPY, which tracks a diverse assortment of 500 of the largest U.S. stocks. The S&P has appreciated 11.46% in 2024. Much of the S&P 500’s performance can be attributed to its increasingly heavy weighting in tech giants such as NVIDIA, 5.79%; Microsoft Corp. MSFT7.17% and Amazon.com Inc. AMZN3.74%.