Latest news with #GlobalXArtificialIntelligence&TechnologyETF
Yahoo
25-06-2025
- Business
- Yahoo
ETFs to Watch as SoftBank Eyes $1T Arizona AI hub
With the global AI market projected to surpass $1 trillion by 2031, the field is emerging as an increasingly attractive investment opportunity. According to Statista, the U.S. AI market is expected to witness a CAGR of 26.95% from 2025 to 2031, reaching a valuation of $309.7 billion by 2031, cementing its position as the largest AI market globally. In addition to the optimistic growth forecasts, President Trump has repeatedly emphasized his ambition to make the United States the global leader in AI. This stance further reinforces the country's position as an ideal destination for AI-related investments. According to Bloomberg News, as quoted on Reuters, Masayoshi Son, the founder of SoftBank, is proposing a $1 trillion complex in Arizona focused on developing robotics and AI technologies. This is in addition to President Trump's announcement in late January regarding 'Stargate,' a $500 billion private-sector investment aimed at building AI infrastructure in the United States, with Oracle, OpenAI and SoftBank as key players in the joint venture. As per the reports, Son is looking to partner with Taiwan Semiconductor Manufacturing TSM for the project, aiming to revive high-end tech manufacturing in the United States and replicate the scale and efficiency of China's Shenzhen industrial hub. This aligns with President Trump's push to bring manufacturing back to the country. Masayoshi Son is also in discussions with major tech companies to bring them on as potential investors. According to Yahoo Finance, Son is lining up the key Vision Fund portfolio firms to take part in the proposed initiative. However, according to the New York Post, the plan largely depends on the Taiwanese company agreeing to the proposal and backing from the Trump administration and state officials. Moreover, the plans remain in the early stages and are subject to change. Below, we highlight funds that investors may consider to capitalize on the ambitious proposal. Increasing exposure to AI-focused funds presents a compelling opportunity for investors, as initiatives ramp up the momentum behind the AI and Tech market in the United States. These developments, along with robust market forecasts, make AI and tech-related ETFs a strategic addition to portfolios with long-term investment horizons. Investors can consider iShares U.S. Technology ETF IYW, Fidelity MSCI Information Technology Index ETF FTEC, Global X Artificial Intelligence & Technology ETF AIQ and Global X Robotics & Artificial Intelligence ETF BOTZ. Surging AI use is driving the demand for data center capacity. Uranium demand is poised to surge, driven by increasing nuclear adoption to power energy-hungry data centers and tech companies looking to meet clean energy goals. With an increasing focus on nuclear energy and uranium demand set to grow substantially, uranium ETFs are also an appealing strategic portfolio addition for the long term. Investors can consider Global X Uranium ETF URA, VanEck Uranium+Nuclear Energy ETF NLR, Sprott Junior Uranium Miners ETF URNJ and Themes Uranium & Nuclear ETF URAN to capitalize on the uranium market's upside potential. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports VanEck Uranium and Nuclear ETF (NLR): ETF Research Reports Global X Uranium ETF (URA): ETF Research Reports Global X Artificial Intelligence & Technology ETF (AIQ): ETF Research Reports Sprott Junior Uranium Miners ETF (URNJ): ETF Research Reports Themes Uranium & Nuclear ETF (URAN): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-06-2025
- Business
- Yahoo
2 Technology ETFs to Invest $500 in Right Now
Global X's ETF offers a global bet on the artificial intelligence revolution. VanEck's ETF offers exposure to the ongoing semiconductor supercycle. Both of these funds offer innovative and diversified options for investors. 10 stocks we like better than Global X Funds - Global X Artificial Intelligence & Technology ETF › The U.S. stock market has kept investors on the edge in early 2025. Increasing geopolitical tensions, election-year jitters, and President Donald Trump's tariff policies created a shaky start for the year. But things started changing post-April. Inflation data has eased, and corporate earnings were better than expected. That combination improved investor sentiment for technology stocks. What's driving this renewed interest in technology stocks? It is primarily artificial intelligence (AI). As demand for AI-driven innovation and cloud infrastructure grows, so does interest in the companies that power these technologies. However, for everyday investors, picking individual winners among companies with competing technologies and elevated valuations can be risky. Exchange-traded funds (ETFs) help fill this need. Even if you have a limited budget of $500, investing in either of these two diversified tech ETFs can provide an innovative and low-risk way to build a strong long-term portfolio. With the pace of AI adoption rising rapidly across all walks of life and enterprises increasingly embedding AI-powered tools into core operations, many investors are understandably keen to get exposure to this multi-trillion-dollar market. The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ), a passively managed ETF that tracks the Indxx Artificial Intelligence & Big Data Index, offers a less risky yet pure-play exposure to the ever-evolving AI landscape. The Global X fund holds stakes in over 80 companies across the U.S., Europe, and Asia, including established and innovative players in areas like big data, machine learning, and AI. The holdings include top-notch players such as Nvidia, Microsoft, Palantir Technologies, ASML, and Baidu. It is well-diversified across the AI value chain, with exposure to hardware, software, and platform players in both the U.S. and international markets. The ETF is market-cap-weighted, meaning that larger companies have a greater influence on its performance. The fund's expense ratio (the annual percentage of funds that are used to cover the ETF's operational costs) of 0.68% is higher than the average expense ratio of index ETFs. However, this is justified since the ETF tracks a thematically constructed index, is rebalanced semi-annually, and involves multiple international holdings. With $3.45 billion in assets under management (AUM), the ETF is also significantly liquid. Considering its numerous advantages, Global X Artificial Intelligence & Technology ETF may prove to be an excellent way for risk-averse long-term investors to invest $500 in AI. Going hand in hand with the AI boom is the insatiable demand for underlying AI-optimized hardware infrastructure, particularly in data centers, the automotive sector, and industrial applications. Hence, it is no surprise that semiconductor players have been some of the biggest beneficiaries of the ongoing AI revolution. While semiconductors are a cyclical industry, the upcycle has definitely been extended by several secular tailwinds. However, suppose investors want a more diversified and less risky exposure to this trend without speculating which chipmaker will be the next winner. In that case, the VanEck Semiconductor ETF (NASDAQ: SMH) could prove to be a powerful solution. The VanEck fund is a pure-play semiconductor ETF tracking the performance of the MVIS US Listed Semiconductor 25 Index, a modified market-cap-weighted index focusing on 25 of the largest and most liquid U.S.-listed semiconductor companies. Although the index's performance is influenced mainly by the larger players, it also uses capping rules to limit overexposure to any single company. Currently, companies such as Nvidia, Taiwan Semiconductor Manufacturing, ASML, Broadcom, and Advanced Micro Devices account for nearly half of the VanEck fund's total asset holdings. Subsequently, investors are gaining exposure to robust secular trends, including AI, 5G, autonomous vehicles, and edge computing. Additionally, the ETF provides exposure to prominent U.S.-listed international semiconductor companies. SMH has around $25.2 billion in AUM and is highly liquid. It charges a very modest expense ratio of 0.35% and is a cost-effective investment vehicle. Hence, it is evident that the VanEck fund offers an innovative and diversified way to benefit from the upside in the semiconductor industry while controlling for company-specific risks. For investors with $500 or more and a long-term mindset, the VanEck Semiconductor ETF deserves a close look. Before you buy stock in Global X Funds - Global X Artificial Intelligence & Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Global X Funds - Global X Artificial Intelligence & Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Baidu, Microsoft, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Technology ETFs to Invest $500 in Right Now was originally published by The Motley Fool
Yahoo
16-06-2025
- Business
- Yahoo
Meta Investors Cheer as Zuckerberg Doubles Down on AI Commitment
(Bloomberg) -- Meta Platforms Inc. keeps writing bigger checks in pursuit of its artificial intelligence strategy, and traders keep cheering it on, encouraged that the expensive bets will keep paying off. Shuttered NY College Has Alumni Fighting Over Its Future Do World's Fairs Still Matter? As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space NYC Renters Brace for Price Hikes After Broker-Fee Ban As American Architects Gather in Boston, Retrofits Are All the Rage The stock is back near record territory after soaring more than 40% from its April low. Last week, Meta finalized a $14.3 billion investment in Scale AI, whose leader is joining a team being assembled by Chief Executive Officer Mark Zuckerberg to pursue artificial general intelligence. That came just after Meta raised its capital spending forecast for 2025 to as much as $72 billion. 'The amount of spending might give some pause, but we're confident Meta can use AI to drive revenue and accelerate growth,' said Jake Seltz, who manages the Allspring LT Large Growth ETF. 'This shows Meta is committed to making the investments it needs to maintain its leadership, and while the stock has had a nice run, we're still bullish on the long-term opportunity.' Meta's rally has coincided with a resurgence in trader appetites for AI-related stocks, after the earnings season alleviated fears that Big Tech companies might rein in spending on expensive computing gear. The rebound marks a shift from earlier in the year, when stocks such as Nvidia Corp. tumbled on concerns about AI models developed on the cheap in China. An exchange traded fund that tracks AI stocks including Inc. is up 32% from a low on April 8, the day before US President Donald Trump paused tariffs on trading partners, sparking a broad relief rally in stocks. Over that period, the Global X Artificial Intelligence & Technology ETF has outperformed the S&P 500 and the tech-heavy Nasdaq 100, which have gained about 20% and 27%, respectively. Allen Bond, portfolio manager at Jensen Investment Management, bought Meta shares for the first time in recent weeks, in part because of the company's aggressive spending on AI. He also cited improved operational efficiencies and the shift away from the so-called metaverse, which prompted the company to change its name from Facebook in 2021. 'Using AI to optimize the data it has on users for revenue is a clear application, one that allows Meta to play offense while Alphabet is playing defense,' Bond said, referring to concerns that the Google parent could lose market share in the lucrative search business to AI services like ChatGPT. 'While AI is expensive, there is good evidence that it is really paying off so far.' Meta's return on invested capital hit a record high of 31% in the first quarter, more than double the levels from 2023 when the company's metaverse ambitions were driving higher spending. Meta uses AI to improve ad targeting and increase engagement across its apps, which also include Instagram and WhatsApp. The Wall Street Journal recently reported that Meta is looking to fully automate ad creation, using AI technologies. Dan Salmon, an analyst at New Street Research, estimated that generative AI creative tools could boost Meta's annual ad revenue growth by 1% to 2% over the next several years, and as much as 4% by the end of the decade. Still, long-term tailwinds from AI are widely expected, raising the question of how much further the stock can rally in the near term. Shares trade at 24.5 times estimated earnings, cheaper than other megacaps, but still above its own average over the past decade of about 22 times. While Wall Street is broadly optimistic — nearly 90% of the analysts tracked by Bloomberg recommend buying — Meta shares are just shy of the average price target, suggesting limited expectations for additional gains. 'It is still in the buy range, since you're getting pretty strong growth for a pretty reasonable price,' said Greg Halter, director of research at the Carnegie Investment Counsel. 'Still, rallies like this don't continue forever, and it certainly isn't the screaming buy it was not too long ago.' Top Tech Stories Taiwan has blacklisted Huawei Technologies Co. and Semiconductor Manufacturing International Corp., dealing another major blow to the two companies spearheading China's efforts to develop cutting-edge AI chip technologies. The Washington Post is investigating a cyber attack on the email accounts of some journalists, prompting the newspaper to beef up its online security. Apple's unveiling of iOS 26 and the Liquid Glass interface was the most discussed part of its developers conference, but the real gems were its enhancements to CarPlay, the Vision Pro and the iPad. Imax Corp.'s Chinese arm is aggressively adding screens across the country, betting on big local and US productions to boost its sales in the world's second-largest film market. Earnings Due Monday Postmarket Digital Turbine --With assistance from Subrat Patnaik. American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? The $7 Billion Nicotine-Pouch Market's Next Target? Women ©2025 Bloomberg L.P.
Yahoo
13-06-2025
- Business
- Yahoo
AI Fund Assets Reach $38B on Record Chinese Inflows
Global assets in artificial intelligence and big data funds surged more than sevenfold over the past five years, reaching $38.1 billion by the end of 2025's first quarter, with AI ETFs dominating the U.S. market, according to a recent Morningstar Direct report. The artificial intelligence investment theme experienced record inflows in the first quarter, driven by Chinese investors responding to the breakthrough success of domestic AI startup DeepSeek. The Chinese company's efficient AI model demonstrated how advances could improve performance while reducing dependency on high-powered computing hardware, according to the report. The surge reflects growing investor interest in AI technologies following the late-2022 launch of ChatGPT 3.5, which marked a pivotal moment in AI adoption and sparked institutional and retail investor enthusiasm for the sector, Morningstar reports. However, the investment landscape has been marked by high volatility, with AI funds experiencing both dramatic growth and sharp declines as market sentiment shifts. The growth demonstrates how ETFs have become the preferred vehicle for AI investing in the U.S., contrasting with Europe, where actively managed mutual funds dominate, according to the Morningstar report. Unlike Europe, where AI funds are typically actively managed mutual funds, AI investing in the U.S. is overwhelmingly dominated by exchange-traded funds, according to Morningstar Direct. The ETF structure appeals to investors because of its lower cost, greater transparency and enhanced trading flexibility compared with traditional actively managed vehicles. U.S.-domiciled AI and big data fund assets grew 14-fold in just two years, reaching a record $5.5 billion by the end of May 2025. Despite this surge, the U.S. still accounts for only 15% of global AI fund assets, according to the report. The largest AI fund in the U.S. is the Global X Artificial Intelligence & Technology ETF (AIQ), which benefits from first-mover status as the region's inaugural AI-focused ETF. The rise of actively managed ETFs has also contributed to growth, with assets in actively managed thematic AI ETFs reaching $415 million, representing nearly 10% of total U.S.-domiciled AI fund assets, according to Morningstar Direct. The focused style of ETFs makes them suited for targeting granular exposures within the broader AI theme. The largest funds illustrate this diversity of options, according to the report. The so-called Magnificent Seven technology stocks dominate AI ETF holdings, creating structural challenges for fund managers. NVIDIA Corp. (NVDA) appeared in almost nine out of every 10 AI funds, while all seven companies were held by more than half of AI portfolios, according to Morningstar Research. The dominance presents a dilemma for ETF designers. Including these stocks results in overlap with core equity exposures, potentially reducing the appeal of AI ETFs as tactical investments. Excluding them introduces underperformance risk relative to peers, according to the report. The concentration highlights limited geographic diversification. Nearly all frequently held AI stocks globally are U.S.-listed, underscoring American leadership in the technology sector, according to Morningstar | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
AI Fund Assets Reach $38B on Record Chinese Inflows
Global assets in artificial intelligence and big data funds surged more than sevenfold over the past five years, reaching $38.1 billion by the end of 2025's first quarter, with AI ETFs dominating the U.S. market, according to a recent Morningstar Direct report. The artificial intelligence investment theme experienced record inflows in the first quarter, driven by Chinese investors responding to the breakthrough success of domestic AI startup DeepSeek. The Chinese company's efficient AI model demonstrated how advances could improve performance while reducing dependency on high-powered computing hardware, according to the report. The surge reflects growing investor interest in AI technologies following the late-2022 launch of ChatGPT 3.5, which marked a pivotal moment in AI adoption and sparked institutional and retail investor enthusiasm for the sector, Morningstar reports. However, the investment landscape has been marked by high volatility, with AI funds experiencing both dramatic growth and sharp declines as market sentiment shifts. The growth demonstrates how ETFs have become the preferred vehicle for AI investing in the U.S., contrasting with Europe, where actively managed mutual funds dominate, according to the Morningstar report. Unlike Europe, where AI funds are typically actively managed mutual funds, AI investing in the U.S. is overwhelmingly dominated by exchange-traded funds, according to Morningstar Direct. The ETF structure appeals to investors because of its lower cost, greater transparency and enhanced trading flexibility compared with traditional actively managed vehicles. U.S.-domiciled AI and big data fund assets grew 14-fold in just two years, reaching a record $5.5 billion by the end of May 2025. Despite this surge, the U.S. still accounts for only 15% of global AI fund assets, according to the report. The largest AI fund in the U.S. is the Global X Artificial Intelligence & Technology ETF (AIQ), which benefits from first-mover status as the region's inaugural AI-focused ETF. The rise of actively managed ETFs has also contributed to growth, with assets in actively managed thematic AI ETFs reaching $415 million, representing nearly 10% of total U.S.-domiciled AI fund assets, according to Morningstar Direct. The focused style of ETFs makes them suited for targeting granular exposures within the broader AI theme. The largest funds illustrate this diversity of options, according to the report. The so-called Magnificent Seven technology stocks dominate AI ETF holdings, creating structural challenges for fund managers. NVIDIA Corp. (NVDA) appeared in almost nine out of every 10 AI funds, while all seven companies were held by more than half of AI portfolios, according to Morningstar Research. The dominance presents a dilemma for ETF designers. Including these stocks results in overlap with core equity exposures, potentially reducing the appeal of AI ETFs as tactical investments. Excluding them introduces underperformance risk relative to peers, according to the report. The concentration highlights limited geographic diversification. Nearly all frequently held AI stocks globally are U.S.-listed, underscoring American leadership in the technology sector, according to Morningstar | © Copyright 2025 All rights reserved Sign in to access your portfolio
