Artificial intelligence (AI) has captured the attention of investors as one of the most promising technologies of our time. With ChatGPT unveiled earlier this year, the public debate about AI, its potential opportunities, and the possible dangers it represents reached frenzied heights.
The intensity of the chatter around AI has led to some concerns that the space might be in a bubble or that interest in it could wane. However, a look at flows into ETFs that focus specifically on AI suggests that investor engagement remains strong.
Highest YTD Performing Artificial Intelligence ETFs
The Global X Robotics & Artificial Intelligence ETF (BOTZ) is the largest AI-focused fund currently trading on U.S. markets with $2.5 billion in assets. Launched on September 12, 2016, BOTZ has an expense ratio of 0.69%. In June so far, the ETF pulled in $155.01 million, bringing its total net flows for the year to $530.55 million. With a remarkable YTD return of 43.16%, investors are showing a keen interest in this fund and continue to invest in it.
The passively managed Global X Artificial Intelligence & Technology ETF (AIQ) is another heavyweight in the space with an AUM of $311.9 million. The fund launched on May 11, 2018, and has an expense ratio of 0.68%. In June, the fund recorded net flows of $61.42 million, bringing its total for the year to $126.32 million. The fund has a YTD return of 39.60% and clearly continues to be a popular choice among investors.
Other AI ETFs
The First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT) launched on February 21, 2018, and tracks an index. It has an expense ratio of 0.65% and an AUM of $355.7 million. In June, ROBT recorded net flows of $42.46 million, bringing its total net flows for the year to $119.59 million, roughly one-third of its total assets. It delivered a return of 30.68% YTD.
The iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) has also seen inflows. The passively managed fund was launched on June 26, 2018. It has an expense ratio of 0.47%, making it a low-cost option for investors seeking to invest in this growing industry. The fund has $402.8 AUM. In June, IRBO had net flows of $38.02 million; its net flows for the year are $110.27 million. The fund has a YTD return of 30.49%