5 Safe, Inexpensive Ways to Invest in AI

It’s very clear that artificial intelligence is here to stay.

According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. 

And, according to Marketing AI Institute, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture. 

Even MIT Technology Review once said, “Artificial intelligence is changing the world and doing it at breakneck speed…. The experts go on to predict a 50 percent chance that AI will be better than humans at more or less everything in about 45 years.” Yet, this is only the start – and its potential impact on your portfolio could be significant.

However, some investors are a bit intimidated when it comes to picking out the right AI stocks to buy and hold, aside from Nvidia and Advanced Micro Devices.

If you find yourself in that category, you may want to invest in exchange-traded funds (ETFs), which do the hard work for you. Plus, with them, you can own a basket of hot AI stocks and pay less for the opportunity. And in some cases, you can also collect yield.

In short, if you want exposure to artificial intelligence and passive income, jump into ETFs.

Global X Artificial Intelligence & Technology ETF 

If you want to diversify at a lower cost, there are ETFs like the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ | AIQ Price Prediction). 

With an expense ratio of 0.68%, the ETF invests in companies that potentially stand to benefit from the further development and utilization of artificial intelligence (AI) technology. 

Some of its top holdings include Palantir, Oracle, Broadcom, Netflix, Nvidia, Microsoft, and Meta Platforms, to name a few of its 88 total holdings. Since bottoming out in April at around $31, the AIQ ETF is now up to $47. From here, we’d like to see the AIQ ETF closer to $60.

The ETF also just paid out a dividend of just over four cents on July 7. Before that, it paid a dividend of just over a penny on January 7. 

Global X Robotics and Artificial Intelligence ETF 

Another one of the top AI ETFs to consider is the Global X Robotics and Artificial Intelligence ETF(NASDAQ: BOTZ). With an expense ratio of 0.68%, the ETF invests in companies that should benefit from the increased adoption of robotics and AI. 

Some of its 49 holdings include Nvidia, Keyence, DynaTrace, SMC Corp., Intuitive Surgical, Upstart Holdings, and C3.ai, to name a few. The BOTZ ETF also just paid out a dividend of just over seven cents per share on July 7. 

Since bottoming out at around $24 in April, the BOTZ ETF now trades at $34. From here, we’d like to see it test $40 a share near term.

Roundhill Generative AI & Technology ETF 

With an expense ratio of 0.75%, the Roundhill Generative AI & Technology ETF (NYSEARCA: CHAT) is the world’s first generative AI ETF. 

Some of its 41 holdings include Nvidia, Alphabet, Meta Platforms, Microsoft, Oracle, Palantir Technologies, and Alibaba Group Holding, to name a few. Since bottoming out at around $29 in April, the CHAT ETF is now up to $58. From here, we’d like to see the ETF test $65 a share.

iShares Future AI and Tech ETF 

With an expense ratio of 0.47%, the iShares Future AI and Tech ETF (NYSEARCA: ARTY) offers exposure to 48 global companies involved with artificial intelligence infrastructure, cloud computing, and machine learning. In fact, some of its top holdings include Broadcom, Arista Networks, Advanced Micro Devices, Nvidia, and Super Micro Computer, to name a few.

Since bottoming out at around $27 in April, the ETF is now up to $44.22. We’d wait for the ETF to pull back from overbought conditions before jumping in. Long term, we’d like to see the ARTY ETF rally to $55 a share. 

Invesco AI and Nex Gen Software ETF

With an expense ratio of 0.5%, the Invesco AI and Nex Gen Software ETF (NYSEARCA: IGPT) invests in companies with considerable exposure to technologies or products that contribute to future software development. Some of its top holdings include Alphabet, Nvidia, Meta Platforms, Advanced Micro Devices, Micron Technology, and Adobe, to name a few. 

Since bottoming out at around $34 in April, the IGPT ETF is now up to $53 a share. We’d also wait for the overbought ETF to pull back before buying. Longer-term, we’d like to see the ETF rally to at least $60 a share.