Global X Artificial Intelligence & Technology ETF (AIQ)

Overview

The Global X Artificial Intelligence & Technology ETF (AIQ) seeks to invest in companies that potentially stand to benefit from the further development and utilization of artificial intelligence (AI) and technology in their products and services. It provides exposure to companies involved in AI hardware, software, and related technologies across various sectors.

Reputation and Reliability

Global X is a well-known ETF provider with a reputation for innovative and thematic ETFs.

Management Expertise

Global X has a dedicated team managing thematic ETFs, including those focused on technology and innovation.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence & Big Data Index.

Investment Approach and Strategy

Strategy: The ETF tracks an index designed to provide exposure to companies involved in the artificial intelligence and big data sectors.

Composition The ETF primarily holds stocks of companies that are involved in artificial intelligence and technology.

Market Share: AIQ's market share within the AI-focused ETF segment varies, and is influenced by fund performance, marketing, and investor preferences.

Total Net Assets (AUM): 182178559

Key Competitors

• BOTZ
• IRBO
• ROBO

Competitive Landscape

The AI-focused ETF market is competitive, with various funds offering exposure to different segments of the AI and robotics industries. AIQ competes with other specialized tech ETFs and general tech ETFs, with advantages stemming from its specific AI focus. Compared to broader tech ETFs, AIQ offers targeted exposure but may lack diversification.

Historical Performance: Historical performance varies depending on the period assessed. Performance is directly tied to the growth and adoption of AI technologies and the performance of the underlying companies.

Benchmark Comparison: The ETF's performance is typically compared to the Indxx Artificial Intelligence & Big Data Index. Tracking error may exist due to fund expenses and sampling techniques.

Expense Ratio: 0.68

Average Trading Volume

The average trading volume of AIQ reflects moderate liquidity, enabling relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread of AIQ is generally tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

AIQ is influenced by factors like advancements in AI technology, government regulations, economic conditions affecting technology spending, and investor sentiment towards innovative technologies.

Growth Trajectory

The ETF's growth trajectory is linked to the broader adoption of AI across various industries and advancements in related technologies. Changes to strategy and holdings will depend on market dynamics and index reconstitution.

Competitive Edge

AIQ's competitive advantage lies in its focused exposure to the artificial intelligence sector, offering investors a targeted way to participate in the growth of AI technologies. The fund aims to capture the potential upside of companies involved in AI hardware, software, and services, distinguishing itself from broader technology ETFs. This specific focus caters to investors who have a high conviction in the future of AI. Its well-defined index and Global X's marketing efforts contribute to its visibility and attractiveness.

Volatility

AIQ's historical volatility can be relatively high due to the growth-oriented nature of AI companies and rapid technological changes.

Market Risk

AIQ is subject to market risk, including sector-specific risk (technology sector) and risks associated with companies dependent on emerging technologies. It can be affected by economic downturns, changes in investor sentiment, and regulatory developments.

Ideal Investor Profile

AIQ is suitable for investors with a high-risk tolerance seeking growth opportunities through exposure to the artificial intelligence sector.

Market Risk

AIQ is more suited for long-term investors who are bullish on the AI industry and are comfortable with sector-specific risks and volatility.

The Global X Artificial Intelligence & Technology ETF (AIQ) provides targeted exposure to companies involved in the artificial intelligence and technology sectors, offering investors a means to participate in the growth of AI. AIQ's performance is dependent on the advancement and adoption of AI technologies across industries, making it suitable for investors with a high-risk tolerance and a long-term investment horizon. Its expense ratio and trading liquidity are reasonable, but investors should be aware of the potential for volatility associated with the technology sector. The ETF faces competition from similar thematic ETFs, but its specific focus on AI provides a unique proposition for investors focused on this rapidly growing field.

Data Sources:

• Global X ETFs website
• ETF.com
• FactSet

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. ETF performance is subject to change and past performance is not indicative of future results. Market share data is estimated and may not be precise.