Yahoo Finance AI ETFs: Q1 of 2024 Update
The year 2023 was crucial in the Artificial Intelligence (AI) industry, characterized by dynamic company moves, groundbreaking initiatives, major product launches, substantial investments and strategic acquisitions. Companies like Google, Microsoft MSFT and Amazon AMZN launched major updates to their AI services, emphasizing improved performance, user experience and ethical AI practices.
Major AI Product Launches and Updates in 2023
It all started with OpenAI releasing ChatGPT in late November 2022, Microsoft announcing huge investments in OpenAI in January 2023, Google launching Bard Chatbot in February 2023, Microsoft unveiling Bing Chat in Windows 11 and OpenAI continuing to lead the AI revolution with the launch of GPT-4 in March. Then, Google debuted AI-powered search and BARD in May 2023, Nvidia’s market cap hit the $1-trillion mark in late May 2023 on AI euphoria, which boosted the demand for chips.
After that, things in the AI arena strengthened with Anthropic launching CLAUDE 2 in July 2023. OpenAI debuted GPT enterprise in late August 2023. Amazon bet on Anthropic in September. The Biden government signed an AI executive order in October 2023, Amazon announced the launch of its new chatbot – "Q" – in late November 2023 and Google unveiled its most effective Generative AI model, Gemini, in December 2023.
What Happened So Far in Q1 of 2024?
A wider spread of AI among companies has been noticed. Amazon is on its way to shell out billions more to support an artificial intelligence startup as it eyes an edge in the new technology arms race. The tech and cloud giant said Mar 27, 2024 that it would spend another $2.75 billion backing Anthropic, adding to its initial $1.25 billion check.
Apple (AAPL) is likely to use their own AI models, or lease them from Google for the upcoming AI features of the iPhone 16 Pro and the iPhone 16 Pro Max. In China, reports suggest that Apple is likely to deploy Baidu’s AI models for all devices in the region. There are also news that Apple is in talks to build Google's Gemini artificial intelligence engine into the iPhone.
Not only these, Apple announced this week that it will host its annual developers conference, WWDC, from June 10 through June 14, where Apple could reveal its long-awaited artificial intelligence strategy. Notably, Apple is seen as a laggard so far in the AI race.
In Nvidia’s GPU Technology Conference (GTC) held in March, CEO Jensen Huang unveiled the latest cutting-edge chips. Also, at the conference, the company unveiled partnerships in the healthcare sector, representing a strategic move toward expanding its revenue streams beyond tech sectors. These partnerships include collaborations with Johnson & Johnson JNJ for surgical applications and GE Healthcare to enhance medical imaging.
ETFs in Focus
With AI technology rapidly advancing and becoming increasingly integral to various industries, investors must be looking for ways to capitalize on this trend. Below, we highlight a few AI-focused ETFs for investors.
ROBO Global Robotics and Automation Index ETF (ROBO)
The underlying ROBO Global Robotics and Automation Index measures the performance of companies that derive a portion of revenues and profits from robotics-related or automation-related products or services. The fund charges 95 bps in fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
The underlying Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles. The fund charges 69 bps in fees.
iShares Robotics And Artificial Intelligence Multisector ETF (IRBO)
The underlying NYSE FactSet Global Robotics and Artificial Intelligence Index is composed of equity securities of companies primarily listed in one of 43 developed or emerging market countries that are the most involved in, or exposed to, one of the 22 robotics and artificial intelligence-related FactSet Revere Business Industry Classification Systems. The fund charges 47 bps in fees.
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
The underlying Nasdaq CTA Artificial Intelligence and Robotics Index is designed to track the performance of companies engaged in Artificial intelligence, robotics and automation. The fund charges 65 bps in fees.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
ROBO Global Robotics and Automation Index ETF (ROBO): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports
