Hancock Prospecting Bets Big on Global X Artificial Intelligence and Technology ETF: Should Investors Buy Too?

Core Insights - Hancock Prospecting has made a significant investment in the Global X Artificial Intelligence & Technology ETF (AIQ), acquiring 1,447,190 shares valued at approximately $71.75 million, increasing its total position to $73.82 million [2][3] - The AIQ position now represents 2.4% of Hancock Prospecting's $3.07 billion assets under management (AUM) as of September 30, 2025 [3] Investment Details - The AIQ ETF has a market capitalization of $5.98 billion and has posted a one-year total return of 30%, outperforming the S&P 500 by 15 percentage points [4][7] - As of December 4, 2025, AIQ shares were priced at $50.94, reflecting a 5% decline from their 52-week high [3] ETF Overview - The Global X Artificial Intelligence & Technology ETF focuses on companies involved in AI development and big data, with a non-diversified structure that emphasizes targeted sector allocation [6][7] - Major holdings in the ETF include MP Materials Corporation (32.5% of AUM), Invesco Nasdaq-100 ETF (25% of AUM), and Teck Resources (11.2% of AUM) [5] Performance Comparison - While Hancock's investment in AIQ is notable, it is significantly smaller compared to its holding in the tech-heavy Invesco Nasdaq-100 ETF (QQQ), which is ten times larger [8] - AIQ's one-year return of 30% surpasses QQQ's 21% and the S&P 500's Technology Sector's 24% returns, although AIQ has lagged behind these peers since 2018 [8][9] Cost and Volatility - AIQ has an expense ratio of 0.68%, higher than QQQ's 0.2%, and a dividend yield of 0.12%, which is one-quarter of QQQ's yield [10] - The ETF exhibits a higher beta, indicating it is slightly more volatile than its tech-focused counterpart [10]