AI & The Market: A Rather Sensible Proposition

by

One observes, with a certain weariness, the current fuss over artificial intelligence. It’s all frightfully modern, of course, and the sums being bandied about – four trillion by 2030, they say – are enough to give one a headache. Still, a sensible investor doesn’t ignore the inevitable, however vulgar. The question, naturally, isn’t if one should participate, but how, and without getting one’s fingers too thoroughly soiled.

Predicting which of these digital darlings will flourish and which will simply… vanish, is, frankly, a pastime for optimists. One prefers a strategy that minimizes risk, a sort of financial umbrella against the inevitable squalls. And that, my dears, is where a carefully chosen Exchange Traded Fund – an ETF, for those keeping up – comes into play.

If you find yourself with a thousand dollars burning a hole in your pocket – a perfectly respectable sum, though hardly enough to purchase a small principality – investing in the Global X Artificial Intelligence and Technology ETF (AIQ 0.04%) appears, shall we say, reasonably prudent. Let me explain, before you reach for the smelling salts.

A Diversified Portfolio: A Touch of Common Sense

The beauty of this particular fund lies in its breadth. We’re not putting all our eggs in one silicon basket, you see. It holds approximately 86 different companies, a rather charmingly diverse collection spanning semiconductors, data infrastructure, and software. This means that even if one particularly bright spark fizzles out, the portfolio remains, if not exactly buoyant, at least afloat.

It’s a rather clever arrangement, really. If the current obsession with AI infrastructure wanes – and let’s be honest, these enthusiasms rarely last – and the focus shifts to software, you’ll likely still have a stake in the game. The fund boasts holdings in the usual suspects – Alphabet, Nvidia, Taiwan Semiconductor – as well as a few more… speculative ventures, including Palantir. A touch of daring never hurt anyone, provided one doesn’t overdo it.

And it’s not merely a question of size. The fund includes both established giants and promising start-ups, and extends its reach beyond our shores, offering exposure to international developments. A truly cosmopolitan portfolio, wouldn’t you agree?

Loading widget...

Past Performance: A Modest Brag

Now, I loathe to dwell on past glories – it’s so dreadfully common – but one must acknowledge that the Global X Artificial Intelligence and Technology ETF has performed rather well. Of course, past performance is no guarantee of future success – a platitude so tiresome one could scream – but it does suggest a degree of competence.

Over the past three years, the fund has increased by over 141%, significantly outperforming the S&P 500’s 82%. A rather handsome return, wouldn’t you say? It doesn’t mean it will always outperform, naturally. The market is a fickle beast, and one should never assume anything. But it does suggest that the fund’s selection of stocks is, shall we say, benefiting from this artificial intelligence craze.

There is, of course, a price to pay. The fund’s expense ratio is 0.68% – $6.80 for every $1,000 invested. A trifle higher than the average, but hardly ruinous. One must pay for expertise, after all, and a small fee seems a reasonable price to avoid a financial catastrophe.

A Word to the Wise: Vigilance, My Dear

There are, undoubtedly, numerous AI companies poised for success. But diversification, as always, is key. The Global X Artificial Intelligence and Technology ETF offers a sensible, if not entirely thrilling, approach. However, even with a diversified fund, one must remain vigilant. Keep abreast of developments in the AI world, and ensure that your investment remains aligned with your objectives.

After all, my dears, the market is a stage, and we are merely players. A little common sense, a touch of cynicism, and a well-diversified portfolio – that’s all one needs to survive, and perhaps even thrive.

Read More

2026-01-18 15:52