AI Exposure Without the Hype: 3 ETFs That Offer Smarter AI Bets

Core Viewpoint - Many ETFs focused on artificial intelligence (AI) heavily rely on a few major companies, particularly NVIDIA, which constitutes significant portions of their portfolios [1][2]. Group 1: ETF Overview - The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) targets companies involved in AI, robotics, and automation, with a diversified portfolio of over 100 holdings [3][4]. - ROBT has returned 9.7% year-to-date (YTD), slightly outperforming the S&P 500 and the Magnificent Seven [5]. - The iShares Future AI & Tech ETF (ARTY) tracks the Morningstar Global Artificial Intelligence Select Index, focusing on firms critical to generative AI and related technologies, with around 50 holdings [7][8]. - ARTY has a YTD return of 11.4%, indicating stronger performance compared to ROBT [9]. - The ROBO Global Artificial Intelligence ETF (THNQ) includes a mix of well-known and lesser-known AI companies, with a strong international focus and a YTD performance of 14.5% [11][12]. Group 2: Fund Characteristics - ROBT has an expense ratio of 0.65%, while ARTY's is 0.47%, and THNQ's is 0.68%, reflecting varying cost structures among these ETFs [5][9][12]. - The largest holding in ROBT is Symbotic Inc., representing only 2.4% of the portfolio, showcasing its diversification [4]. - THNQ's largest holding occupies about 3.3% of its portfolio, indicating a balanced approach to investment [11][12].