When it comes to investing in transformational technology, exchange-traded fund (ETF) investors shouldn’t look further than artificial intelligence (AI). It’s certainly something that Japanese holdings company SoftBank is focusing on in the future.
“Within 30 years, definitely, things will be flying,” said SoftBank CEO Masayoshi Son. “Things will be running much faster without accident. We will be living much longer, much healthier. The diseases that we could not solve in the past will be cured.”
Per a report by CNBC, “Son has long championed the benefits of artificial intelligence, investing billions of dollars in companies he believes can capitalize on it. Some of these companies include Uber Technologies and WeWork. He said all the 70 or so investments of his Vision Fund have been focused on AI.”
And how much of that effort actually translates to dollars invested in AI?
“We are investing $100 billion in just one thing, AI,” Son added.
AI ETFs to Consider
Whether society is ready for it or not, robotics, AI, machine learning, or any other type of disruptive technology will be the next wave of innovation. For investors who missed out on the bull market run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, they can look to capitalize on disruptive tech options in 2019 and beyond that.
In the investment space, AI is increasingly gaining widespread attention for its ability to be a disruptive technology that spans across a variety of sectors, which makes it a viable alternative for exchange-traded funds (ETFs) opportunities. For one ETF, the AI-Powered International Equity ETF (NYSEArca: AIIQ), it’s been a year since inception and has already bested its benchmark by 7 percent.
Under the hood, the fund runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.
AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.
Another ETF to consider is the ARK Innovation ETF (NYSEArca: ARKK). ARKK is an actively-managed fund that invests in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation.
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