Global X ETFs Europe has launched the Artificial Intelligence UCITS ETF (AIQU LN), now trading on multiple European exchanges. This ETF, with a total expense ratio (TER) of 0.40%, offers investors exposure to companies positioned to benefit from advancements in artificial intelligence technology.
How AIQU ETF Works
AIQU seeks to track the Indxx Artificial Intelligence Index, focusing on companies poised to benefit from AI's rapid growth and commercialization. It invests in businesses in developed markets that either develop AI technologies, integrate AI into their products and services, or produce hardware essential for AI and Big Data applications.
The index targets 60 leading AI developers and providers of AI-as-a-service, as well as 25 companies specializing in AI hardware and quantum computing. Eligible companies must meet specific criteria for market capitalization, liquidity, and geographic presence, with weightings based on free float market capitalization.
The fund currently holds 84 positions, with its top 10 holdings comprising over a third of its assets.
- ServiceNow (NYSE:NOW) Inc. – 3.56%
- IBM (NYSE:IBM) – 3.50%
- Oracle Corp (NYSE:ORCL). – 3.43%
- Alibaba (NYSE:BABA) Group ADR – 3.42%
- Adobe (NASDAQ:ADBE) Inc. – 3.27%
- Meta (NASDAQ:META) Platforms Inc. – 3.26%
- Netflix Inc (NASDAQ:NFLX). – 3.26%
- Cisco Systems Inc (NASDAQ:CSCO). – 3.26%
- Accenture (NYSE:ACN) PLC Class A – 3.23%
- Tencent Holdings Ltd – 3.10%
Keep in mind that holdings are subject to change.
Why You Should Consider AIQU ETF
Investors might be drawn to the AIQU ETF because of its strategic focus on the booming artificial intelligence (AI) industry. Forecasts predict that the global AI market could skyrocket from $39 billion in 2022 to a staggering $1.3 trillion by 2032. That's a more than 300-fold increase!
This explosive growth is largely fueled by groundbreaking advancements in generative AI, which are sparking innovation across countless industries.
AI technology isn't just confined to data centers anymore. It's making its way into real-world applications in fields like agriculture and healthcare, among others. The number of people using AI tools is set to climb dramatically, from 254 million in 2023 to over 729 million by 2030.
The AIQU ETF provides exposure to both established AI giants and exciting newcomers. It's not just focused on one sector or region; it covers a wide range of industries and geographies. This diversification could help investors capitalize on the global AI revolution as it unfolds across various industries and parts of the world.