Global X Artificial Intelligence & Technology ETF: A Comprehensive Review

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An artist’s illustration of artificial intelligence (AI). This illustration depicts language models which generate text. It was created by Wes Cockx as part of the Visualising AI project l...
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The Global X Artificial Intelligence & Technology ETF is an exchange-traded fund that tracks the Citi AI & Technology Index, which includes companies involved in AI and tech.

The fund has a total of 52 holdings, with the top 5 holdings being NVIDIA, Alphabet, Microsoft, Amazon, and Facebook.

The fund's expense ratio is 0.68%, which is relatively low compared to other ETFs in the market.

Investment Information

The Global X Artificial Intelligence & Technology ETF (AIQ-Q) has a unique mix of tech names, including AI-related companies like ServiceNow and Microsoft, as well as tech giants like Alibaba and Oracle.

The ETF trades at almost 4x price to sales and almost 41x PE, which some experts consider expensive at this stage of the cycle.

However, a small portion of this ETF can still make sense for investors.

The MER (management expense ratio) is around 68 bps, and the ETF seems to be equal-weighted, rather than market-cap weighted.

Here's a quick rundown of the top holdings in the ETF:

  • NOW: ServiceNow
  • BABA: Alibaba
  • ORCL: Oracle
  • CSCO: Cisco Systems

Stock Information

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The Global X Artificial Intelligence & Technology ETF (AIQ-Q) is an American stock trading under the symbol AIQ-Q on the NASDAQ. It's also referred to as NASDAQ:AIQ or AIQ-Q.

The stock price of Global X Artificial Intelligence & Technology ETF on January 15, 2025, was $38.99. This information can be found on the day the stock closed.

The ETF holds a unique mix of tech names, including companies like ServiceNow, Microsoft, Alibaba, and Oracle. Some experts caution that tech names are expensive at this stage of the cycle.

The MER (Management Expense Ratio) of the ETF is around 68 bps, and it seems to be equal-weighted rather than market-cap weighted.

Here are some of the top names in the ETF:

  • NOW (ServiceNow)
  • BABA (Alibaba)
  • ORCL (Oracle)
  • CSCO (Cisco Systems)

This ETF is different from your normal AI ETFs, as it holds tech companies linked to AI, like ServiceNow or Microsoft, and not just Nvidia. It's also worth noting that the ETF trades at almost 4x price to sales and almost 41x PE.

Rating

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The rating of a stock can be a crucial factor in making an informed investment decision. A high rating means that stock experts mostly recommend buying the stock.

Stock experts use their signals to calculate the rating of a stock, such as the Global X Artificial Intelligence & Technology ETF (AIQ-Q). This rating can give you an idea of the overall sentiment towards the stock.

A high score on the Stockchase rating system indicates that experts mostly recommend buying the stock, while a low score suggests that experts mostly recommend selling the stock. This can be a useful tool in helping you make a decision about your investments.

For example, the Stockchase rating for the Global X Artificial Intelligence & Technology ETF is calculated according to the stock experts' signals. The rating can give you a quick and easy way to gauge the overall sentiment towards the stock.

Frequently Asked Questions

Q: What is the difference between a stock and a bond?

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A stock represents ownership in a company, while a bond is a debt security issued by a company to raise capital.

Q: How do I diversify my investment portfolio?

Diversifying your portfolio can be achieved by investing in different asset classes, such as stocks, bonds, and real estate.

Q: What is the risk associated with investing in the stock market?

The risk of investing in the stock market is that the value of your investments can fluctuate rapidly, potentially resulting in losses.

Q: How can I minimize my investment risk?

One way to minimize your investment risk is to invest in a mix of low-risk and high-risk investments.

Q: What is the role of a financial advisor?

A financial advisor can help you create a personalized investment plan tailored to your financial goals and risk tolerance.

Q: How often should I review my investment portfolio?

It's recommended to review your investment portfolio at least once a year to ensure it remains aligned with your financial goals.

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Market Performance

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The Global X Artificial Intelligence & Technology ETF has shown strong market performance.

The stock closed at a price of $38.99 on 2025-01-15.

Decision Making

Artificial intelligence (AI) is transforming industries and revolutionizing the way we live and work. This ETF is designed to track the performance of companies involved in AI and technology.

Investing in AI and technology can be a high-risk, high-reward strategy. The fund's focus on companies with significant exposure to AI and technology trends can provide exposure to growth opportunities.

The Global X Artificial Intelligence & Technology ETF holds a portfolio of 45 stocks, including companies like NVIDIA, Alphabet, and Amazon. These companies are leaders in AI and technology innovation.

The fund's top holdings are concentrated in the software and services sector, which is a key area of AI adoption. This sector includes companies like Microsoft, Intel, and Oracle.

Investors should consider their own risk tolerance and financial goals before investing in this ETF. The fund's high concentration in the software and services sector may not be suitable for all investors.

The ETF's expense ratio is 0.68%, which is relatively low compared to other ETFs in the market. This can help investors save on costs and maximize their returns.

Curious to learn more? Check out: Artificial Intelligence

Frequently Asked Questions

Which is the best artificial intelligence ETF?

There isn't a single "best" artificial intelligence ETF, as the top choice depends on your investment goals and risk tolerance. Consider exploring options like XAIX, AIQ, or IGPT, which track various AI and tech sectors, to find the one that suits your needs.

Is AIQ a strong buy?

AIQ has a consensus rating of Moderate Buy, indicating a mixed sentiment with more buy ratings than sell ratings. While it's not a strong buy, the majority of analysts recommend buying AIQ.

Who owns Global X AI?

As of late 2023, Global X AI is owned by Mirae Asset Global Investments. The company manages a significant portfolio of US$39 billion.

Which companies are in AIQ?

The companies listed are TSLA (Tesla Inc.), NFLX (Netflix Inc.), NOW (ServiceNow Inc.), ORCL (Oracle Corp.), CRM (Salesforce Inc.), CSCO (Cisco Systems Inc.), IBM (International Business Machines Corp.), and META (Meta Platforms Inc.). These companies are not explicitly mentioned as being in AIQ, but rather are listed with a percentage value, suggesting a possible stock market or investment context.

Krystal Bogisich

Lead Writer

Krystal Bogisich is a seasoned writer with a passion for crafting informative and engaging content. With a keen eye for detail and a knack for storytelling, she has established herself as a versatile writer capable of tackling a wide range of topics. Her expertise spans multiple industries, including finance, where she has developed a particular interest in actuarial careers.

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