Why this artificial intelligence ASX ETF will be my next buy

Instead of chasing the next Nvidia, I'm considering this ETF.

| More on:
Hologram of a man next to a human robot, symbolising artificial intelligence.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

It's no secret I am an ASX ETF truther. Achieving diversification in one trade can help take some risk out of investment decisions.

Of course, there are experienced and knowledgeable experts who can beat the returns of global markets by buying and selling individual stocks. 

But for the average punter, the S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index (SP: .INX) will provide solid returns over the long term. 

As well as using ASX ETFs to track these historically 'safe' markets, ETFs are a great way to gain exposure to emerging sectors. 

Two that I am eyeing in the near future are the artificial intelligence (AI) and technology sectors. 

The tech and AI boom 

2024 was a monster year for what experts called "The AI Revolution." Overseas, stocks like Nvidia Corp (NASDAQ: NVDA) led the way as global demand and investment in AI rose. 

ASX tech stocks took the ride, with many experiencing massive returns

More importantly, experts are tipping this is just the beginning. 

According to global fund manager Blackrock, AI infrastructure investment could top US$700 billion by 2030, which is the equivalent of 2% of US GDP.

That's why I am looking for an ASX ETF that provides exposure to these companies.

Betashares Global Robotics And Artificial Intelligence ETF (ASX: RBTZ)

RBTZ is an ASX ETF that aims to track the performance of global companies involved in the production or use of robotics and artificial intelligence products and services. 

When you think of "robotics", you might picture the movie versions such as Wall-E or the Terminator. But the reality of robotics and AI in 2025 is a little bit different. 

For example, the RBTZ fund's second-largest holding is Intuitive Surgical (NASDAQ: ISRG). It's an American biotechnology company that develops, manufactures, and markets robotic products designed for minimally invasive surgery. 

So when you think of robots, it's not necessarily Skynet T-1000. 

Since its initial listing in 2018, the ETF has grown 48.59%, but I believe there is room for a lot more upside in the long term as these industries blossom. 

Created with Highcharts 11.4.3Betashares Global Robotics And Artificial Intelligence ETF PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 201815 Jan 2025Zoom ▾2018201920202021202220232024202520182018202020202022202220242024www.fool.com.au

Why I like this ETF

Picking which individual AI and tech companies will take off in the future is something of a fool's game. But with RBTZ, you can gain exposure to around 50 of the leading companies globally all at once. 

Furthermore, I like that the RBTZ has holdings across international markets. This is one key difference from similar ASX ETFs, such as Global X Artificial Intelligence ETF (ASX: GXAI), which is dominated by US holdings (more than 70%). 

RBTZ's largest holdings at the time of writing are: 

  • Nvidia Corp: 13.2%
  • Intuitive Surgical: 11.1%
  • ABB Ltd: 9.2%
  • Keyence Corp: 6.6%
  • SMC Corp: 4.9% 

The country allocation is: 

  • USA: 51.7%
  • Japan: 26.2%
  • Switzerland: 10.4%
  • Finland: 2.1%
  • South Korea: 2.0%
  • China: 1.7%
  • Other: 5.9%

The RBTZ ETF has a 12-month distribution yield of 4.6% and management fees of 0.57%. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Intuitive Surgical and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Man holding Australian dollar notes, symbolising dividends.
ETFs

Buy these ASX ETFs for passive income

Want an easy way to generate income from the share market? Check out these funds.

Read more »

A magnifying glass highlighting India on a map.
ETFs

Why I think this is a top ASX ETF for growth and dividends

This fund can provide a useful mixture of passive income and capital growth.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
ETFs

With Middle East tensions escalating, should I buy DFND ETF?

DFND ETF is up 50% for the year to date.

Read more »

A man sees some good news on his phone and gives a little cheer.
ETFs

3 exciting ASX ETFs to buy and hold for 10 years

Let's see what these exciting funds provide investors with access to.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
ETFs

$10,000 invested in ARMR ETF a year ago is now worth…

This ASX ETF is a relatively new listing and it's shooting the lights out.

Read more »

Woman and man calculating a dividend yield.
ETFs

What is the dividend yield of the Vanguard MSCI Index International Shares ETF (VGS)?

Is this major fund an attractive option for passive income?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
ETFs

The best ASX ETFs to buy with $1,000

Investors with money to put into the market might want to check out these funds.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
ETFs

5 ASX ETFs to ride the next bull market

Check out these funds that could thrive during the next bull market.

Read more »