Some Top AI Stocks Reside in an Internet ETF

Core Insights - The article emphasizes the intersection of AI technology and internet companies, highlighting that some firms previously considered pure internet stocks are now leaders in the AI space [1] - The ALPS O'Shares Global Internet Giants ETF (OGIG) is presented as a viable investment option for exposure to AI leaders without the need for individual stock picking [1][2] Group 1: ETF Overview - OGIG has a total value of $161.1 million and follows the O'Shares Global Internet Giants Index, providing flexibility compared to traditional ETFs that focus heavily on communication services and consumer discretionary stocks [2] - Nearly half of OGIG's holdings are allocated to the technology sector, positioning it as a significant player in the AI investment landscape [2] Group 2: Key Holdings - Microsoft (MSFT) is the largest component of OGIG, accounting for 6.20% of the ETF, and is recognized for its leadership in AI due to its investment in OpenAI and success in upselling Office 365 [3][4] - The ETF also includes international equities, with China being the second-largest geographic weight, reflecting the global nature of AI leadership alongside the U.S. [4] Group 3: Competitive Advantage - Competing ETFs primarily focus on domestic stocks, lacking exposure to major international players like Alibaba (BABA) and Tencent (TCEHY), which are also included in OGIG's portfolio [5] - Tencent's AI investments are expected to enhance advertising technology, improving content recommendations and reducing ad creation costs, thereby solidifying its position in China's internet sector [6]