It’s not only domestic fund managers like Evolve and CI which can be pushing into the Canadian AI ETF scene. Invesco Canada offers INAI, which tracks an index of the identical name for a 0.35% management fee. The index is actively managed by the Morningstar Equity Research Next Generation Artificial Intelligence Committee, which reviews the holdings and assigns them risk rankings, making it less passive than some might expect.
The index focuses on 4 sub-themes (generative AI, data and infrastructure, software and services) and includes notable foreign holdings resembling Taiwan Semiconductor Manufacturing. INAI isn’t currency-hedged but offers a Canadian dollar-hedged version, INAI.F.
Finally, Global X ETFs (formerly Horizons) actually offers not one but two AI-themed ETFs: AIGO and RBOT.
AIGO, which debuted on May 14, 2024, tracks the Indxx Artificial Intelligence & Big Data Index by packaging a US-listed AI ETF on Global X right into a fund of funds structure. It charges a 0.49% management fee and isn’t currency hedged. AIGO’s underlying US ETF currently holds corporations resembling Nvidia, Qualcomm, Broadcom, Netflix, Meta and Tencent, giving it a broader give attention to semiconductors and communications.
RBOT, then again, has been around for much longer, having gone public in 2017 and amassed assets of around $55 million. It charges a management fee of 0.45%, which translates to a MER of 0.64% and a trading expense ratio (TER) of 0.04%. RBOT tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which focuses more on applied robotics and automation than simply software and includes healthcare corporations like Intuitive Surgical and foreign manufacturers like Yaskawa Electric Corp.
Investing in one among these ETFs is easy. Simply enter the ETF’s ticker symbol into your broker application, determine what number of shares you should buy and at what price (using a limit order is beneficial), and be patient until your transaction completes.
While the rapid expansion of the AI sector and the flood of latest AI ETFs in Canada are undoubtedly exciting, I can not help but draw parallels to the dot-com bubble of the late Nineteen Nineties, particularly the rise and fall of Cisco Systems.
At its peak, riding the wave of the Internet and networking boom, Cisco briefly overtook Microsoft because the world’s most precious company, with a market capitalization of nearly $500 billion.
