Just wanted to share a Google AI response to how to put together an AI ETF bundle

Anna

OK, I admit I am bored and have too much time on my hands. This morning my demented mind wondered into the question as to whether, considering my background, I should, for the fun of it, create my own ETF of ETFS. So I GOOGLED the following statement which admittedly was a biased description of the end result.

I want to create my own bundle of about five or six ETFs that cover various aspects of AI. I would like a little infrastructure like data centers and AI platform/chips. I would also want to include companies involved in generative AI models as well as industrial application models like robotics. it might also include companies offering application software for AI modelling.


This was the GOOGLE AI response, and I just might do exactly what it suggested since, because of the bias above, four of these were already on my short list when I was trying to do it without AI. Yes, I noticed AI counts poorly with six being five.

Building a diversified AI ETF bundle requires selecting funds that focus on different segments of the AI value chain. Based on your criteria, here are six ETFs that cover infrastructure, chips, generative AI, robotics, and application software.

Ticker ETF Name Focus Area
DTCR Global X Data Center & Digital Infrastructure ETF Data Centers/Infrastructure
SMH VanEck Semiconductor ETF AI Chips & Platforms
CHAT Roundhill Generative AI & Technology ETF Generative AI Models
BOTZ Global X Robotics & Artificial Intelligence ETF Industrial AI/Robotics
AIQ Global X Artificial Intelligence & Technology ETF Application Software/Broad AI

Detailed Breakdown
Infrastructure (Data Centers): Global X Data Center & Digital Infrastructure ETF (DTCR) provides pure exposure to the physical infrastructure, holding real estate investment trusts (REITs) and operators like Equinix and Digital Realty that lease data center space to hyperscalers.

AI Platforms/Chips: The VanEck Semiconductor ETF (SMH) is a leading option that concentrates on critical hardware suppliers like Nvidia, TSMC, and Broadcom, which manufacture the chips necessary for AI training and operation.

Generative AI Models: The Roundhill Generative AI & Technology ETF (CHAT) is an actively managed fund specifically focused on companies heavily involved in generative AI applications and model development, such as Microsoft, Alphabet, and Meta Platforms.

Industrial Applications (Robotics): For robotics and automation, the Global X Robotics & Artificial Intelligence ETF (BOTZ) is a specialized ETF that includes companies like Intuitive Surgical and FANUC, which are leaders in industrial and non-industrial robotics applications.

Application Software for AI Modelling: The Global X Artificial Intelligence & Technology ETF (AIQ) offers a broad, globally diversified approach that includes both AI developers and adopters across software and cloud platforms, providing exposure to a wide range of application software companies.

This bundle provides targeted exposure to different layers of the AI ecosystem, allowing you to capture growth from hardware to various software and application-oriented companies.

Maybe $10,000 each just for the fun of it. Maybe, I'll think about it some more.

catch22

Hi Anna, Great. !!!
My first question. Did you use the generic Google AI or Gemini? Your query suggests generic.
I've not tried Gemini yet.
Note: We currently hold SMH and BOTZ.

I would move this to 'Other Investing'.

Anna

I just put the statement into GOOGLE search and this was the result. It was so close to a subset of ETFs I was considering (near the tops of my categories) that I realized that, whereas AI might be confirmatory to someone of experience, it might be valuable to someone hesitant to take risks, again, like me. I was and am hesitant to put something like this in a more serious category. I just had to share it though. Love the OT option.

catch22

I used used your exact wording with a search via Google AI (not Gemini) have these similar results. More later...........

To create a diversified "AI Bundle", you can combine specialized ETFs that target specific layers of the AI value chain. The following five or six ETFs cover your requirements for infrastructure, chips, generative AI, robotics, and software modeling:

1. AI Infrastructure & Data Centers
Global X Data Center & Digital Infrastructure ETF (DTCR): Focuses on the "landlord" layer of AI, holding data center REITs and digital infrastructure companies that lease space and power to major AI developers.

Pacer Data Transmission and Communication Revolution ETF (TRFK): Captures the broader data center ecosystem, including semiconductors, hardware, and essential industrial systems like data center cooling (HVAC).

2. Semiconductors & AI Chips
VanEck Semiconductor ETF (SMH): Provides concentrated exposure to the hardware "profit engines" of AI, including top holdings like Nvidia, TSMC, and Broadcom.

Global X AI Semiconductor & Quantum ETF (CHPX): A more specialized alternative that focuses on companies supplying critical hardware for AI training and includes a small allocation to experimental quantum computing.

3. Generative AI & AI Platforms
Roundhill Generative AI & Technology ETF (CHAT): The first ETF specifically dedicated to generative AI. It is actively managed, allowing it to adapt to rapid shifts in model builders like Microsoft, Alphabet, and Meta.

iShares Future AI & Tech ETF (ARTY): A cost-efficient choice for broad exposure to platform companies building and deploying AI models, alongside software and services.

4. Industrial AI & Robotics
Global X Robotics & Artificial Intelligence ETF (BOTZ): Focuses on industrial robotics and automation, with significant holdings in manufacturing-heavy regions like Japan and Switzerland.

ARK Autonomous Technology & Robotics ETF (ARKQ): An actively managed, high-conviction fund targeting disruptive industrial applications like autonomous vehicles, drones, and 3D printing.

5. Application Software & Modeling
Invesco AI and Next Gen Software ETF (IGPT): Targets companies generating revenue from software development, data storage, and AI platforms used for modeling and analysis.

Global X Artificial Intelligence & Technology ETF (AIQ): Provides broad "full value chain" exposure, heavily weighted toward technology sector software and big data analytics.

--- Suggested 6-ETF "AI Revolution" Bundle:

DTCR (Physical Data Centers)
SMH (AI Chips & Fabrication)
CHAT (Generative AI & Platforms)
IGPT (Software Modeling & Application)
BOTZ (Industrial Robotics/Automation)
QTUM (Quantum Computing - optional for futuristic modeling)

Anna

I asked Google AI if there was a single ETF that offered coverage in these areas. It produced a short list which has some we saw before. Truth be told, they are broad and the WisdomTree is interesting, albeit boring. I think I prefer my original just throw some ETFs together approach. Yea, maybe a kiss of Quantum Computing. (Kissing that subject has gone on for twenty to thirty years if memory serves me well.)

Yes, a few single ETFs aim to provide broad exposure to the entire artificial intelligence (AI) value chain, blending investments in infrastructure, software, and applications. The most prominent examples are the Global X Artificial Intelligence & Technology ETF (AIQ) and the iShares Future AI & Tech ETF (ARTY).

Overview of Broad AI ETFs

These funds aim to capture the full scope of the AI revolution, unlike more specialized ETFs that focus on a single segment like semiconductors or robotics.

Global X Artificial Intelligence & Technology ETF (AIQ): This fund tracks an index of companies involved in developing AI technologies as well as those providing the hardware (like semiconductors) and software that facilitate AI and big data analysis. It offers a globally diversified portfolio with exposure to software platforms, cloud computing, and industrial applications. This makes it a good "core" holding for a generalist AI allocation.

iShares Future AI & Tech ETF (ARTY): Similar to AIQ, ARTY provides exposure across the AI ecosystem, from the physical infrastructure and chips to software and services. It has holdings in major chipmakers like Nvidia and AMD, data center infrastructure specialists like Vertiv, and major software companies. Its lower expense ratio may be attractive to some investors.

Amplify Bloomberg AI Value Chain ETF (AIVC): This ETF uses an equal-weighted, rules-based approach to ensure exposure to companies essential to the entire AI ecosystem, including those driving generative AI, machine learning, and natural language processing.

WisdomTree Artificial Intelligence and Innovation Fund (WTAI): This fund is another option offering a diversified portfolio of companies involved in the AI supply chain, including machine learning, natural language processing, and robotics.

These broad ETFs can serve as an effective single-fund solution for your desired bundle, offering diversification across the various components of the AI industry.

AI responses may include mistakes. For financial advice, consult a professional. Learn more

catch22

Anna, ETF Compare site. This easy to use to compare two ETF's for the amount of holdings overlap. ETT's only.....
No login required for basic compares. Scroll down for other info for your compares. I've not looked around the site for other tools.

I'm going to 'dig' around a bit more today, as time allows.

Anna

@catch22 Thanks, I'll give it a try. If you left a link, it was overwritten with a MFO fund popup for the Aberdeen Emg Mkt Telecom Infra Common CEF (ETF).

Found one at EFT.com. Just noticed all my uses of ETF got linked the same as yours.

catch22

Anna, This is a good link that I just tested for connection. Hopefully, MFO didn't or isn't having a server burp.

ETFRC

Anna

catch22 said:

Anna, This is a good link that I just tested for connection. Hopefully, MFO didn't or isn't having a server burp.

ETFRC

It works fine. Thanks!

catch22

Anna, The begin point of this chart is March 14, just before the Big Beautiful Tariffs.
But, this was also the begin period of the AI push news, yes?
Regarding the chart: It is a bit busy with the line graph, but at the bottom right, one will find the 'line graph box' shaded for the current view; but selecting the 'red/green' box will change the graph to a bar graph for returns that is very easy on the eyes for returns of the etf's. The current time frame set is for 200 business days. This time frame may be changed with a 'right click' onto the 200 days, and then select your choice.
I may have forgotten something with this, but I'll add, if my brain cells give another thought.

Stock charts

The following etf symbols are in the chart:

AIQ,ARTY,AIVC,WTAI,DTCR,SMH,BOTZ,QTUM,CHAT

Anna

Quite correlated as we would expect. I am mystified that robotics isn't doing better. You know, if you just ask Morningstar what they have as the top ten investments in these etfs, there is, again not surprisingly, a lot of overlap no matter what the purported emphasis is in the index. Alas, my focus got hijacked by the appearance of NVIDIA's role. Thanks for the graphs. After playing with them for a while, I still think this is more my toying with my youth than knowing what I am doing. Nevertheless, I still find myself drawn to, correlated or not, a desire to categorize (robotics, models, etc.) and put a tiny bit across several themes, even though none seem wed entirely to their purported theme. Huang discusses five layers he sees which are better than my descriptors and, when you listen to him talk about what happens above the NVIDIA platform, it is easy to understand why funds of companies get interwoven across themes and layers.

OT even for OT: Years ago, I became a NVIDIA fan and never invested in it. I just cheered them on. I just ran into this interview of Jensen Huang (linked below). It struck me that, despite obvious political differences, his tune about technology and AI doesn't deviate much from what I would say to my colleagues back in the 1980s. The capabilities have begun to arrive but the fears of people about their jobs haven't changed (mostly in discussion toward the end of the video). I recall that a PhD synthetic chemist once accosted me about how wrong I was that his genius could be replaced by a computer program. I tried to describe to him how he missed the point which was that he could collaborate intellectually and historically with a computer to expedite, improve and refine one of his genius ideas. Similarly, Huang discusses the same subject and people's fears and lack of vision have not changed over the past forty or fifty years.

NVIDIA’s Jensen Huang on Securing American Leadership on AI