Depending on which source you choose from, AI is estimated to add anywhere from $13 trillion to $200 trillion worth of value to the global economy by 2030.
And while those trillion-dollar figures have been thrown around for a few years already, the release of ChatGPT – plus an accompanying host of other generative AI models – has kicked the AI revolution into overdrive.
While the potential for AI technology is clear, the challenge for investors is separating the real from the hype.
As the year goes by, expect more and more companies to claim that they’re “using AI” – even if the reality is far more ordinary (remember how every company was rushing to add the word “blockchain” to their names just a few short years ago?).
AI’s potential is real – but the challenge for investors is also real.
That’s why today’s “all-in-one AI” pick is a way to stack the odds in your favor and give yourself the best chance of capturing most of the gains from the just-beginning AI revolution.
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
Just like how buying the S&P 500 index is an easy way to capture the returns of the entire US stock market, the iShares Robotics and Artificial Intelligence Multisector ETF is an easy way to capture as much of the returns of the AI sector as possible.
Currently, IRBO holds over 100 stocks with AI exposure, ranging from familiar big names like Meta, Nvidia, Microsoft, Alphabet, and Amazon to much lesser-known names like Lumen Technologies, Silicon Laboratories, Maytronics, Cognex, and Kyocera.
Importantly, IRBO isn’t just US-focused but comprises AI-related stocks from all around the globe. This matters because there is an AI arms race going on – meaning ignoring companies from China would result in missing out on lots of potential.
When IRBO first launched in 2022, it underperformed the S&P 500 – which shouldn’t be a surprise considering that it’s essentially composed of nothing but tech companies.
But since 2023, it has more than doubled the performance of the S&P 500, with generative AI providing an additional tailwind for this ETF.
Now because it’s an ETF, you shouldn’t play this one like a fast-moving stock where you try to get out near the top. This is firmly a buy-and-hold pay to maximize gains from the AI revolution. If that’s your style, then consider adding IRBO to your portfolio.
To your wealth,
Felix @ Ace of Investing