Investing in artificial intelligence (AI) shares has become a highly popular trend on the ASX in recent months. With the dramatic launch of the AI service ChatGPT last year, investors have awoken to the potential of AI and, of course, the profits it could bring.
This was arguably amplified by the stunning returns of leading AI share NVIDIA Corporation (NASDAQ: NVDA) over the past month or two.
Now, investors may want to gain some exposure to this exciting industry. But the fact remains that AI is still an extremely complex area that might be offputting to many investors once they get into the weeds.
Choosing a winner when you don't fully understand the technology can be a difficult and dangerous endeavour. That's where ASX exchange-traded funds (ETFs) might come in handy.
One of the advantages of an ETF is the ability to get exposure to an entire sector or industry without having to sift through it to find individual winners.
On the ASX, there are ETFs that cover everything from gold miners and cybersecurity stocks to oil futures and video gaming shares. Luckily, there are also a few that give investors exposure to AI stocks. So what are these AI ETFs?
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AI ETFs on the ASX
Well, one of the most pertinent AI funds on the ASX is probably the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).
This fund only focuses on global companies that have direct involvement in either robotics, automation, unmanned vehicles, and artificial intelligence. More than 40% of its portfolio is made up of US shares, but you also get exposure to the Japanese, Swiss, Norwegian, and Canadian markets, among others.
Some of the BetaShares Robotics and Artificial Intelligence ETF's largest holdings include Intuitive Surgical Inc, Keyence Corp, and Abb Ltd. But its largest holding by far is none other than NVIDIA.
This ETF charges a management fee of 0.57% per annum and has returned an impressive 27.4% in the 12 months to 31 May. It has also averaged a return of 7.64% per annum since its inception in 2018.
This fund is probably the most AI-centric ETF on the ASX. However, there are other ETFs that also give investors exposure to AI stocks.
Another similar ETF to consider for AI exposure is the Global X Global Robotics & Automation ETF (ASX: ROBO).
This fund is similar in scope to RBTZ. NVIDIA is the second-largest holding in this portfolio, with Intuitive Surgical, Keyence, and ServiceNow Inc amongst the top holdings here. The fund also has similar exposures to the US markets, as well as those of Japan. However, it does have greater exposure to other countries such as Taiwan and Germany.
The Global X Robotics & Automation ETF charges a management fee of 0.69%. It has returned 21.45% over the past 12 months and has averaged 9.26% per annum over the past five years.
Some other funds to consider
Other ASX ETFs that don't explicitly target AI stocks, but could still give investors some exposure include the Global X FANG+ ETF (ASX: FANG), the Global X Morningstar Global Technology ETF (ASX: TECH), and the BetaShares NASDAQ 100 ETF (ASX: NDQ).
There is also the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) for those investors looking for a fund with some local AI stocks, such as Appen Ltd (ASX: APX).
So as you can see, investors looking for an AI ETF are spoilt for choice on the ASX.
