The AI craze that significantly boosted the economy in 2023 may have to mature in 2024, but it still offers huge potential. As a route into that space, investors may want to consider the benefits of an AI ETF. Exchange traded funds bring investors significant tax benefits, transparency, and flexibility. With the Robo Global Artificial Intelligence ETF (THNQ), investors can get exposure to an ETF that is seeing strong returns and tech action.
First, investors may want to pay attention to the AI ETF’s tech charts. According to the graph from YCharts seen below, the strategy’s price continues to hover well above both its 50- and 200-day simple moving averages (SMAs). That suggests some serious, positive momentum with its 50-day SMA above its 200-day SMA. At the same time, with its Relative Strength Indicator (RSI) in a healthy position, its tech chart looks appealing overall.
Meanwhile, investors can also look to THNQ’s returns. The fund has returned 16.7% over the last three months, according to VettaFi data. Over one year, that number rises to 47.3% — a pretty solid performance. The strategy has outperformed both its ETF Database and FactSet Segment categories over that time, too.
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The strategy invests in firms working in AI tech and AI infrastructure. It tracks the ROBO Global Artificial Intelligence Index to do so. The index includes firms selected from a proprietary database, with individual firms receiving an “AI revenue” score from 1 to 100.
Charging 68 basis points (bps), THNQ could be positioned for continued success in 2024. AI could benefit significantly from big macro changes like rate cuts or big steps in flagship programs like OpenAI’s ChatGPT. As such, for investors seeking an AI ETF, THNQ may merit a closer look.
For more news, information, and analysis, visit the Artificial Intelligence Channel.
VettaFi LLC (“VettaFi”) is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.
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