Artificial intelligence (AI) stocks have been soaring this year, not unlike how metaverse stocks and blockchain stocks were red-hot buys in previous years. While some valuations may come back down to reality this year, AI can make for a good place to invest in for the long haul.
One exchange-traded fund (ETF) that has been doing particularly well this year and that can make for a great option to invest in is the Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ). Up around 37% year to date, it has been soundly outperforming the S&P 500, which has risen by just 12%.
The ETF invests in companies that are involved in robotics, automation, and even autonomous vehicles. There are 44 stocks within the fund, including Nvidia (NASDAQ:NVDA), its top holding, which has been one of the hottest stocks to own this year, recently hitting a $1 trillion market cap. Other noteworthy stocks in the fund include robotic-assisted surgery company Intuitive Surgical (NASDAQ:ISRG), and pure play AI stock C3.ai (NYSE:AI).
Just under half of the fund's stock are U.S.-based companies. Japanese stocks make up one-third of the ETF, giving investors some good geographical diversification. Tech stocks account for 48% of the fund's overall weight, with industrials and healthcare stocks also representing a fair amount of stocks at 35% and 15% of the ETF's weight, respectively.
The fund's expense ratio of 0.69% is in line with other thematic ETFs. There could be some risk with the ETF given how scorching hot AI stocks have been this year but in the long run, this can be a great way to have exposure to some promising businesses.
